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%
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
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
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
At 6:50 AM, GIFT Nifty futures were trading 173 points lower at 23,382, indicating a potential gap-down start for the markets
RBI's interest rate decision, quarterly earnings and global cues would be the major driving factors for equity markets this week, analysts said adding that the impact of the Union Budget could linger on this week. Trading activity of foreign investors will also be a key driver for the markets, experts noted. "US and India's manufacturing PMI for January to be released on Monday, will be the key macro data to watch out for. Investors will closely study the fine prints of the Budget policies and market focus will shift back to the corporate earnings/outlook and RBI's interest rate decision to be announced on Friday," Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd, said. From the earnings calendar, Asian Paints, PC Jeweller, Tata Power, Titan, Apollo Tyres, Bharti Airtel, ITC,F, SBI, LIC, M&M and NHPC would announce their earnings this week. Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said, "Will the RBI soften its stance ...
In its Feb 1 budget, the government is not expected to increase infrastructure spending, a main driver of growth in past years, leaving the onus on the RBI to revive the $4 trillion economy
Bank CEOs to meet for pre-policy talk on Monday
Industry body CII expects the RBI to cut the benchmark interest rates next month to support sagging growth, its President Sanjiv Puri said on Wednesday and stressed the need to boost job creation through targeted interventions for labour-intensive sectors in the upcoming Budget. In an interview with PTI, Puri flagged "sticky" food inflation, highlighting the need to build agricultural resilience and de-linking it from the interest rates under the inflation targeting framework, arguing that it is on account of climate change and not really influenced by the monetary policy. Puri is also the Chairman and Managing Director of ITC. Finance Minister Nirmala Sitharaman is slated to present the Budget in Parliament on February 1. The Confederation of Indian Industry (CII) chief also expressed optimism that much-needed labour reforms will be taken up by the BJP-led NDA government in the third term, stressing that it would benefit the economy and create more jobs. Puri also raised the issu
Bank stocks today: Jefferies has retained its 'Buy' ratings on Axis Bank, ICICI Bank, HDFC Bank, and SBI, It has upgraded Kotak Bank and downgraded Bank of Baroda
They also support a rate cut to avoid the risk of sharp currency appreciation if India does not normalise interest rates when most other global central banks have already embarked on an easing cycle
A rate cut will not be possible for the next 13-14 months due to the inflation outlook, said Mishra, who is also a part-time member of the PM's Economic Advisory Council
Here's how leading brokerages have interpreted the development, and their expectations from Sanjay Malhotra as regards key rates and maintaining a balance between growth and inflation