Cut in the repo rate comes after 11 consecutive MPC meetings in which the rate remained unchanged at 6.50%
In its December 2024 Monetary Policy Committee meeting, the RBI kept the repo rate unchanged at 6.5 per cent for the eleventh consecutive meeting
The MPC had changed its policy stance to neutral in October and cut banks' cash reserve ratio by 50 bps in December to ease liquidity stress in the banking system
This will be the first MPC meeting since Governor Malhotra took office in December 2024, following the end of Shaktikanta Das's tenure
The Reserve Bank of India may cut the benchmark repo rate by 25 basis points to 6.25 per cent later in the day
RBI monetary policy: Governor Sanjay Malhotra is expected to lower the repo rate by 25 basis points, prioritising economic growth over inflation control
On Thursday thus far, Nifty Bank, Nifty PSU Bank and Nifty Financial Services quoted with losses up to 0.8% in a slippery market; technical charts hint up to 8% potential upside on these indices.
RBI prepares to announce its latest monetary policy decision on Feb 7. This will be the first meeting held under the leadership of Governor Sanjay Malhotra
The governor is chairing an almost entirely new six-member monetary policy committee
In the previous session, Sensex dropped 312.53 points, or 0.40 per cent, to close at 78,271.28, while Nifty50 ended lower by 42.95 points, or 0.18 per cent, at 23,696.30
Stock Market Highlights on February 5, 2025: Broader markets outperformed the benchmarks, with small-cap shares leading the charge, as the Nifty Smallcap100 index ended higher by 1.85 per cent
At 6:33 AM, GIFT Nifty futures were up 71 points at 23,856, signaling a higher start for Indian markets
Malhotra took charge as the 26th RBI governor in December last year
Over 70 per cent of respondents, 45 of 62, in a Jan. 22-30 Reuters poll forecast the RBI would cut its key repo rate by 25 basis points to 6.25 per cet at the conclusion of its Feb. 5-7 meeting
In the past six trading days, Bajaj Finance share has soared 15 per cent. On January 30, 2025, the stock had surpassed its previous high of Rs 8,190 touched in October 2023
There was little impact on the rupee from India's federal budget on Saturday. Indian shares, which were open for a special trading session, closed lower
At 6:50 AM, GIFT Nifty futures were trading 173 points lower at 23,382, indicating a potential gap-down start for the markets
The domestic rate-setting panel has kept the policy repo rate unchanged for the last 11 consecutive meetings after raising it by 250 bps between May 2022 and February 2023
Brokerages believe central bank's actions set the stage for a repo rate cut in February
Malhotra showed keen interest in the RBI's currency intervention functions and expressed no opposition when his team explained the recent movements in the rupee and the need to allow it to depreciate