RBI on Wednesday cut the repo rate by 25 bps to 5.25 per cent and kept its stance neutral, while announcing ₹1 trillion OMO purchases and a $5 billion USD/INR buy-sell swap this month
RBI has proposed to hold a two-month campaign from 1st January next year with an aim to resolve all grievances pending for more than a month with the RBI Ombudsman
After slashing repo rates for three consecutive months since February, the MPC kept the rate unchanged at 5.5 per cent since August
OMOs for liquidity infusion expected, say economists
The RBI may trim the benchmark lending rate by 25 bps in its forthcoming monetary policy meeting, as inflationary pressures are subdued, though some experts believe the central bank is likely to keep the rate unchanged in the backdrop of better-than-expected GDP growth of 8.2 per cent in the second quarter. The consumer price index (CPI) based headline retail inflation is ruling below the 2 per cent lower band mandated by the government for the last two months. Some experts, however, believe that the RBI may continue with the pause on interest rates as economic growth has picked up, sustained by fiscal consolidation, targeted public investment, and various reforms, such as the GST rate cut. The Monetary Policy Committee meeting is scheduled from December 3-5, 2025. RBI Governor Sanjay Malhotra is scheduled to announce the decision of rate-setting panel on December 5. The central bank started its rate-easing cycle in February last year. It has cumulatively reduced the repo rate by
RBI Governor Sanjay Malhotra said this week that recent economic data suggested there was still scope to cut interest rates
State Bank of India is confident of achieving its 3 per cent net interest margin guidance even if the Reserve Bank decides to cut the repo rate by 0.25 per cent in next week's monetary policy review, Chairman C S Setty said. In an interview with PTI, the SBI chairman said that the RBI decision next Friday will be a "close call" and added that the house view at SBI is pointing towards a shallow cut of 0.25 per cent. "...if December rate cut is there, but our house view again is that it would be a shallow rate cut of 0.25 per cent, so it may not have any significant impact on the margins," he said. Earlier this month, before the release of official data pointing to inflation cooling to the lowest ever rate of 0.29 per cent in October, SBI had opined that RBI will opt for a pause in December and cut the interest rate in February. Earlier this week, RBI Governor Sanjay Malhotra said that there is a space for a rate cut and it was mentioned in the last bimonthly policy in October. The
These comments come a week ahead of the meeting of the six-member monetary policy committee that starts from December 3. The decision in the meeting will be announced on Friday, December 5
A forward looking approach would prompt rate cut as H2 GDP growth likely to be softer
Bond mkt expects OMO calendar in Dec policy review
As deposit growth lags credit expansion, Indian banks face shrinking low-cost Casa inflows, rising funding costs, and structural shifts driven by UPI, e-Kuber, and digital savings trends
With inflation easing and rate cuts on the horizon, bond yields may soften while the rupee steadies as trade negotiations with the US shape market sentiment
Global tariff disputes and foreign outflows pressured the rupee, while RBI's 100-basis-point rate cuts and liquidity measures helped bond yields soften during the year
Ram Singh signals potential for multiple rate cuts in FY26-FY27, citing low inflation and scope for accommodative monetary policy to support growth
Equity indices rally on banking gains, Reliance support, and renewed FII interest; both Sensex and Nifty now within 2 per cent of record highs
RBI has kept the policy rate unchanged in the last two meeting
BMI added that the central bank's growth and inflation forecasts for FY26 are too high, pointing to it as one of the main reasons behind the possible cuts
RBI Oct MPC meet 2025: The MPC retained the repo rate at 5.5 per cent, increased the growth estimate and revised the inflation forecast for FY26 downward to 2.6 per cent
The six-member monetary policy committee, led by Governor Sanjay Malhotra, will need to juggle a number of competing objectives this week
The inflation backdrop provides ample room. Core inflation has edged up, but mainly driven by gold prices