Central bank chief says RBI is monitoring the inflation impact of higher crude oil prices, while highlighting India's stronger external position and resilient banking system
RBI's commentary on inflation 'opens the door for rate hikes in the next meeting' in August, according to Pranjul Bhandari, chief India economist at HSBC Holdings Plc
RBI's policy hold and India's stronger-than-expected GDP growth anchored a week marked by firm PMIs, fuel-price risks, trade talks and fresh Cabinet approvals
The decision to hold rates was unanimous. The MPC also retained the neutral stance on policy
Governor Sanjay Malhotra says the central bank has adequate currency stocks and will ensure prompt replenishment wherever ATMs face cash shortages
Gross FDI inflows may surpass $100 billion in FY27, RBI Deputy Governor Poonam Gupta said, citing strong investment momentum despite global uncertainty
Real estate developers and consultants said RBI's decision to keep rates unchanged will support housing demand, project execution and investor confidence despite rising cost pressures
Most importantly, the slew of reforms announced in today's meeting to support the rupee augurs well for the economy and markets while keeping the growth momentum sacrosanct
Elara Capital said that it is building in the first-rate hike in October 2026 and see a total of 50 bps hike this financial year.
RBI has kept the repo rate unchanged at 5.25%, extending its pause on rate changes. What does this mean for your home loan EMI, borrowing costs, and monthly budget? Here's a quick breakdown of the MPC
A rate hike does not appear to be the RBI's preferred course of action at this stage, said Nitin Bhasin, head, institutional equities, Ambit
While immediate forex inflows are not anticipated from the above measures, they are likely to arrest the recent capital outflows and foster improved market sentiment
Stable corporate borrowing costs allow companies, especially those in debt-heavy sectors like infrastructure and manufacturing, said Rajkumar Singhal
For now, the RBI has made a calculated choice: hold the line on interest rates but reinforce the balance of payments.
A hike in the base rate, along with the tax concessions, would have been a workable proposition given the need to shore up the forex inflows, said Joseph Thomas, head of research, Emkay Wealth
In the bond market, the pause combined with a cautious undertone suggests that yields are likely to remain range-bound in the near term, albeit with a discernible upward bias as inflation risks build.
Jatin Gedia of Teji Mandi reckons that Indian Bank, Phoenix Mills and PFC have found support at their respective 200-DMAs and look ripe for further upside, according to technical charts.
The MPC's approach is data-dependent and cautiously hawkish: it acknowledges weaker growth, flags higher inflationary risks, and keeps policy unchanged for now to watch how the trade-off evolves.
Sarvjit Singh Samra of Capital Small Finance Bank said that RBI MPC has appropriately refrained from deploying interest rates as a tool to counter the recent weakness in the rupee.
The classical conundrum faced by RBI as it navigates through a complex set of variables appears to be of managing the currency, economic growth, and inflation, said Killol Pandya