Going forward, continuing policy easing - both rate cuts and liquidity infusions - could eventually alter the growth-inflation
The RBI’s rate-setting panel cut the repo rate by 25 bps to 6% and shifted its stance to 'accommodative'.
Growth in Asia's third-largest economy, which is under threat from slowing urban consumption and tepid private investment, could worsen because of the escalating US-China trade war
Loans linked to policy repo rate to fall
Sector experts and developers said the decision could draw homebuyers back into the market, particularly in the affordable housing segment
The RBI MPC, on Wednesday, unanimously decided to cut the repo rate by 25 basis points, bringing it down to 6 per cent, from 6.25 per cent earlier.
The Reserve Bank's move to lower its benchmark repo rate for the second time in a row will cushion India's economy against external shocks in the face of reciprocal tariffs imposed by the US that has triggered a global turmoil, industry bodies said on Wednesday. The RBI on Wednesday slashed the key interest rate by 25 basis points to 6 per cent providing relief to home, auto and corporate loan borrowers. CII Director General Chandrajit Banerjee termed the decision to continue with the rate easing cycle as timely and prudent. "The rate cut coupled with the shift in monetary policy stance from 'neutral' to 'accommodative', too, is a big positive," Banerjee said. The RBI's rate cut, and stance change reflect concerns about the impact of slower global growth on domestic economy and a relatively benign outlook for domestic inflation, he added. CII is of the view that RBI's accommodative monetary policy combined with the government's growth-centric fiscal policy will help boost domestic
The likelihood of the RBI going in for another 50bps points rate cut for the rest of the calendar year is very high, says Dr Joseph Thomas, head of research, Emkay Wealth Management
Mahindra & Mahindra, TVS Motor Company, Bajaj Auto and Maruti Suzuki India from the auto pack are trading higher by up to 1 per cent in a weak market
The committee had changed the stance to neutral in October from withdrawal of accommodation
In February, the RBI's six-member monetary policy committee delivered its first rate cut since May 2020 amid a slowdown in the economy, which is expected to have expanded 6.5 per cent in fiscal 2025
In an eventful week ahead, stock markets may face volatile trends before the RBI's interest rate decision and the US inflation data announcements, as investors continue to assess the broader implications of US tariffs on global economy and inflation, analysts said. Investors fear that a full-blown trade war will impact global trade and economic growth, according to market experts. Equity markets would remain closed on Thursday for "Shri Mahavir Jayanti". "This week is set to be volatile for global and Indian markets, as US President Donald Trump imposed tariffs worldwide, igniting fears of an all-out trade war and a global economic recession. "The US inflation numbers will be released along with the FOMC (Federal Open Market Committee) minutes," Puneet Singhania, Director at Master Trust Group, said. Equity benchmarks slumped on Friday due to an across-the-board sell-off, tracking weak global markets amid growing global trade war fears. Domestically, the RBI will decide on intere
RBI has moved liquidity into the surplus side from a deficit four months ago, and some experts feel it may be preparing for monetary transmission before it cuts the repo rate again next week
India's economy is forecast to grow by 6.7 per cent in the current financial year, according to the central bank's estimate released in February
With inflation in India easing to a seven-month low of 3.61 per cent in February and the economy forecast to grow at 6.4 per cent this fiscal year
Since taking office in December, Sanjay Malhotra has reduced interest rates for the first time in five years, injected nearly $60 billion into the banking system
OIS rates, the closest gauge of interest rate expectations, have eased by 10-15 basis points so far in March
After its first easing in five years last month, the Reserve Bank of India may deliver another 25 basis points cut in April, followed by at least one more reduction this year
He said there was a concern about the weaknesses of the manufacturing sector, which is important for job creation, due to subdued urban consumption and slow growth of private investments
In particular, there was a concern about the weaknesses of the manufacturing sector, which is important for job creation due to subdued urban consumption & slow growth of private investments, he said