Page 5 - Rbi Rate Cut

RBI's rate cut to cushion economy amidst global turmoil, says India Inc

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

Accommodative stance, lower credit costs may boost equity market: Emkay

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

Realty, PSU Bank index down 2%; Auto outperforms after RBI cuts repo rate

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

RBI cuts policy rate by 25 bps to 6%, changes stance to support growth

The committee had changed the stance to neutral in October from withdrawal of accommodation

RBI set to cut rates for a second time as US tariffs add to risks

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

Tariffs, US inflation, RBI rate decision likely to guide market movement

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

Broad-based transmission of policy rates still some way off, say experts

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

RBI to cut rates three more times this year on tariff threat, says Citi

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

RBI to cut rates again on April 9, one more expected in August: Poll

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

RBI Guv Sanjay Malhotra raises rate cut hopes with growth-focused policy

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

Swap market prices in more RBI rate cuts amid weak growth, low inflation

OIS rates, the closest gauge of interest rate expectations, have eased by 10-15 basis points so far in March

RBI's rate cut outlook drives investors to bet on Indian bonds gain

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

Manufacturing slump prompted Feb rate cut, says RBI MPC member Kumar

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

Repo rate one of many factors to revive growth: MPC Member Nagesh Kumar

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

Liquidity easing to moderate pressure on banks' net interest margins: Fitch

The Indian banking sector's NIM remains healthy at 3.5 per cent as of the first half of FY25, although it has declined from about 3.6 per cent in FY24, partly due to the upward repricing of deposits

Banks' margins to take 10 bps hit in FY26 due to rate cuts: Fitch Ratings

Last week, the RBI started its rate-cutting cycle by lowering its key policy rate by 25 bps to 6.25 per cent and said it would be watchful and proactive with liquidity measures

Banks' net interest margins likely to decline further after RBI rate cut

Extent of NIM compression will depend on further rate cuts

Best of BS Opinion: Looking beyond boundaries in search of the better

In today's newsletter, we take a look at our opinion pieces through the idea of boundaries and limits, and how they may be applicable to understanding different issues

RBI rate cut: Real estate firms expect mid-housing segments to thrive

Niranjan Hiranandani, chairman of the National Real Estate Development Council and co-founder and managing director (MD) of Mumbai-based Hiranandani Group, said

Rate cut to boost demand for two-wheelers, entry-level cars: Auto industry

The cut in the key benchmark rate by the Reserve Bank of India (RBI) is expected to create a positive sentiment across market and drive stronger demand in price-sensitive two-wheeler and entry-level car segments, automotive industry players said on Friday. The industry players noted that the reduction in rates coming closely after the income tax relief provided to individuals will have a positive impact on the auto sector. The Monetary Policy Committee (MPC), headed by RBI Governor Sanjay Malhotra, slashed the repo rate by 25 basis points to 6.25 per cent on Friday. This was the first reduction since May 2020 and the first revision after two-and-a-half years. "Reduction in rates at this time, closely following the relaxation in income tax for individuals in the recent Budget would certainly have a positive impact on the auto sector, as it will increase accessibility by reducing the financing costs, thereby creating a positive sentiment across the market," Society of Indian Automobil