While a majority of economists expect the central bank to keep rates unchanged, some market indicators like overnight indexed swaps are already pricing in a rate hike
Inflation pressures triggered by an energy price shock means the RBI will likely adopt a hawkish stance and prepare markets for potential rate hikes later this year, economists have said
The Reserve Bank of India's monetary policy committee will decide on the repo rate and announce inflation projections as well on June 5
Today's Opinion highlights the RBI's policy choices, soaring IPL franchise valuations, fiscal challenges, climate targets and a timely examination of contemporary China
Economists expect the RBI to keep rates unchanged and rely on intervention and regulatory measures to manage rupee volatility while maintaining focus on inflation
The Reserve Bank of India (RBI) is likely to keep the benchmark repo rate unchanged in the June monetary policy review, according to a PTI poll of economists and treasury heads. Most of the respondents expect the central bank to resume policy tightening later in FY27 amid mounting inflation risks. Of the respondents surveyed, 11 expect the Monetary Policy Committee (MPC) to maintain the status quo on rates in the upcoming policy to be announced on Friday, while four foresee a 0.25 per cent hike. "Pause because headline inflation remains below the 4 per cent target. The RBI has policy space to wait to see the second round impact on inflation from the fuel price hike. Flexible inflation target provides policy space to look through the first round impact of supply side shocks," said Gaura Sengupta, economist at IDFC First Bank. The MPC will meet between June 3 and June 5 to decide on the policy rates. The central bank has reduced the repo rate by 1.25 per cent since last year to aid .
Inflation will rise in the second half of the year. Growth, too, will falter. It's time to explore other options
The domestic rate-setting panel cut the policy repo rate by a cumulative 125 basis points in 2025 and it was on hold in the February and April policies
A credible framework requires credible measures of price expectations
The Reserve Bank of India will conduct a seven-day variable rate repo auction worth Rs 1 trillion to manage evolving liquidity conditions in the banking system
RBI holds rates amid West Asia risks, as MPC flags inflation, supply shocks, and external pressures while maintaining a cautious growth outlook
The Reserve Bank of India on Friday said it will conduct a variable rate reverse repo auction for ₹2 trillion ($21.58 billion), its first such operation in four months
Bankers termed the Reserve Bank's move to hold rates in its policy review on Wednesday as a prudent and well-calibrated measure. Sector-specific moves like the removal of the Investment Fluctuation Reserve requirement and easing of CRAR (capital and risk-adjusted ratio) computation were also welcomed by bankers. "The RBI's decision to maintain a status quo stance amid ongoing global uncertainties reflects a prudent and well-calibrated approach aligned with market expectations," CS Setty, who chairs the largest lender SBI and also industry grouping IBA, said in a statement. Setty said the regulatory moves will help strengthen banks' capital positions and help support credit growth on a sustained basis. Indian Overseas Bank's managing director and chief executive, Ajay Kumar Srivastava, said the status quo reflects a 'safety first' approach wherein the central bank is prioritising macroeconomic stability. "A cautious stance is warranted amid evolving global uncertainties, particular
RBI signals policy flexibility amid uncertainty, with stable growth outlook, no rate path commitment, and confidence in inflation control and financial stability
Industry stakeholders say stable borrowing costs will sustain homebuyer confidence, support demand across residential and commercial segments, and provide predictability amid economic uncertainty
The central bank raised its inflation forecast to 4.6 per cent and flagged risks from West Asia tensions, while projecting GDP growth at 6.9 per cent for the current financial year
While the Iran-US ceasefire has triggered a risk-on rally, amid falling oil prices, and improved investor sentiment, Apruva Sheth writes that the RBI policy will decide long-term trend sustainability
RBI, on Wednesday, kept repo rate unchanged at 5.25% but trimmed FY27 growth outlook. Pankaj Pandey of ICICI Securities explains the policy impact onequity markets, bond yields, and investor strategy
West Asia conflict shifts RBI tone to caution; Rajkumar Singhal suggests investment strategy as RBI cuts growth outlook, raises inflation forecast
From the growth perspective, the governor's comment that " growth impulses remain strong, supported by robust private consumption and sustained investment demand" is significant and reassuring