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
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
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
Extent of NIM compression will depend on further rate cuts
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
Niranjan Hiranandani, chairman of the National Real Estate Development Council and co-founder and managing director (MD) of Mumbai-based Hiranandani Group, said
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
The repo rate cut of 25 basis points by the monetary policy committee (MPC) of the RBI will give a long-awaited relief on interest rates and support economic growth, according to experts. Chief Economist of Crisil Ltd, Dharmakirti Joshi, said that as expected, the MPC of the central bank cut rates for the first time on Friday since May 2020. The repo rate has been lowered by 25 basis points to 6.25 per cent. Joshi said the recent easing in consumer price index (CPI) inflation and the need to remain supportive of economic growth has moved the RBI to act in this regard. However, the MPC maintained the policy stance at 'neutral', which gives flexibility to remain data dependent and respond to exigencies, Joshi said. The MPC moves in the future will depend more on domestic inflation, he said. "Elevated rates have impacted India's GDP growth, while the budget for the next financial year is mildly supportive of growth, while continuing on the path of fiscal consolidation," he said. Jo
RBI Monetary Policy Highlights: RBI Governor Sanjay Malhotra announced a 25 bps cut in the repo rate -- from 6.5% to 6.25%
State of government finances, concessions offered to tax-payers, and the commitment to progress on the fiscal glide path is eminently complemented by the monetary measures makes this policy different
Looking ahead, we believe that the growth-inflation outlook suggests that there is room for another 25 bps rate cut in either the April or the June 2025 meetings
Given the current economic landscape, moderating inflation, and sluggish growth, another 25-50 bps rate cut within this calendar year remains a strong possibility
RBI MPC: After keeping the benchmark repo rate unchanged at 6.5 per cent for eleven consecutive meetings, the Reserve Bank of India cut rates in its February 2025 meeting
Cut in the repo rate comes after 11 consecutive MPC meetings in which the rate remained unchanged at 6.50%