Rbi Repo Rate

RBI absorbs ₹2.23 trillion via variable rate reverse repo auction

The Reserve Bank of India (RBI) on Friday absorbed Rs 2.23 lakh crore from the banking system amid surplus liquidity by conducting a variable rate reverse repo (VRRR) auction. The central bank received bids worth Rs 2,22,629 crore, which it accepted fully, for a notified amount of Rs 2.25 lakh crore. The amount was accepted at a weighted average rate of 5.24 per cent, the RBI said in a release. The RBI has been conducting VRRR auctions since last month in order to absorb excess liquidity from the banking system and align the overnight money market rates to the repo rate. As of September 17, liquidity in the banking system is estimated to be in surplus of around Rs 6.94 lakh crore, as per RBI data. As part of the liquidity adjustment strategy, the central bank on Thursday sold government securities worth Rs 50,000 crore through Open Market Operations (OMO). The remaining two tranches of G-sec sales of Rs 25,000 crore each are scheduled for September 21 and September 28. The bankin

Post Fed rate hike, experts see up to 50bps RBI policy tightening in CY26

Experts said that the key point is not the size of the increase, but the change in direction, and expect the RBI to consider 50bps hikes in both the October and December policy meetings this year

RBI may hike rates by 25 bps each in Oct & Dec as inflation may cross 6%

Economists say the rate hike cycle could be shallow, with 50-75 bps hike in the current cycle

Markets not yet pricing in rate hike possibility: Aditya Khemka, InCred

A rate hike expectation should have taken the valuation below its historical average, as the earnings growth for the Nifty 50 has been below the historical average, says Khemka.

Best of BS Opinion: RBI rate hike only a matter of time as inflation looms

Today's opinion pieces examine the RBI's policy outlook, weaknesses in public examinations, state capacity, India's infrastructure financing gap and Omer Bartov's critique of Israel

Best of BS Opinion: Inflation projections demand monetary tightening

Today's opinions examine the RBI's inflation dilemma, rising life insurance surrenders, India's employment crisis, possible UPI charges and the shift from food to nutrition security

The story now is not 'lower for longer', but the calm before higher rates

Strong growth, above-target inflation projections and near-zero real interest rates suggest the RBI's dovish stance may not last, raising the prospect of higher rates ahead

'Our endeavour is to bring inflation in line with target over medium term'

RBI Governor Sanjay Malhotra said policy will remain guided by headline inflation and evolving growth dynamics, while reaffirming the central bank's data-dependent approach

Status quo policy: Rate hike may still not be on the cards this year

RBI keeps the repo rate unchanged at 5.25%, raises FY27 growth forecast, trims inflation outlook and leaves the door open on future rate hikes amid global uncertainty

Policy prospects: Inflation projections demand monetary tightening

The RBI's decision to hold rates reflects easing inflation risks for now, but rising price pressures could warrant policy tightening in the coming months

Neutral pause suggests rate hikes aren't imminent: Aditi Nayar

We broadly concur with the MPC's growth forecasts for FY2027, notwithstanding some differences in the quarterly projections, Nayar said.

RBI policy a cautiously constructive hold; focus on liquidity management

The RBI is more likely to use temporary liquidity absorption tools than tighten its policy stance or rates ahead, while system liquidity should improve as government spending accelerates.

RBI policy & market outlook: Calm is conditional, say analysts

For Indian markets, the bigger issue over the next few months, analysts said, isn't the repo rate, but how much more geopolitical pressure the rupee can take before the central bank has to step in.

RBI's balanced pause raises bar for future rate hikes: Amar Ambani, YES Sec

Any further policy tightening is likely to remain contingent on a sustained rise in energy prices or evidence of broader, demand-driven inflationary pressures.

Unanimous MPC vote on rates signals stability amidst global uncertainty

The slight surprise element in the policy was the decision to raise the GDP growth rate projection for FY27 to 6.7 per cent from 6.6 per cent earlier

Rate sensitives shine: Realty up 3%, NSE Auto hits new peak on rate pause

Among interest rate sensitives, Exide, Uno Minda, Bosch, Tata Motors CV, Ashok Leyland, Godrej Properties, DLF and Lodha Developers gained 3-5% in Wednesday's intra-day trade post RBI policy.

RBI MPC: Experts see low scope for hike; policy continuity positive for mkt

The RBI's Monetary Policy Committee kept the repo rate unchanged at 5.25 per cent and retained its neutral stance. Experts noted that the central bank struck a balanced tone

Realty firms welcome repo rate pause, see support for housing demand

Developers said stable borrowing costs would support buyer confidence and project execution, though Anarock cautioned that the pause may not revive mass-market housing

RBI MPC keeps repo rate unchanged at 5.25%, maintains 'neutral' stance

RBI MPC August meeting: At its policy meeting, held between August 3 and August 5, the committee maintained its 'neutral' stance

RBI MPC keeps repo rate at 5.25%, retains neutral stance amid global risks

The RBI retained its neutral monetary policy stance while revising its FY27 inflation forecast to 5 per cent and raising its economic growth projection to 6.7 per cent