Page 8 - Rbi Repo Rate

RBI's likely 25 bps rate cut seen as non-event amid tariff war concerns

Reports suggest that India's overnight indexed swap (OIS) rates signal a bigger reduction or a change in its stance.

'RBI may again cut repo rate by 25 bps as inflation eases, growth slows'

The Reserve Bank is likely to cut key interest rates again by up to 25 basis points this week, as lower inflation provides support for an accommodative monetary policy stance, and there is a pressing need to stimulate growth at a time when the reciprocal tariffs announced by the US is posing a challenge to the global economy. In February, the RBI's Monetary Policy Committee, headed by Governor Sanjay Malhotra, slashed the repo rate by 25 basis points to 6.25 per cent. It was the first reduction since May 2020 and the first revision after two-and-a-half years. The 54th meeting of the MPC, the rate-setting panel, is scheduled to start deliberations on April 7, and the decision will be announced on April 9. The Reserve Bank of India (RBI) has kept the repo rate (short-term lending rate) unchanged at 6.5 per cent since February 2023. The last time the RBI reduced the rate was during the Covid times (May 2020), and thereafter, it was gradually raised to 6.5 per cent. Bank of Baroda Chie

RBI decides not to conduct 14-day repo auction for upcoming fortnight

Banking system liquidity moved into surplus on March 29, after being in deficit since mid-December. The surplus stood at 1.42 trillion rupees, as on April 1

RBI expected to cut repo rate by 25 bps in April, 75 bps in FY26: Ind-Ra

The RBI's monetary policy committee is expected cut benchmark interest rate by 25 basis points in its policy review meeting next month to push growth, India Ratings and Research (Ind-Ra) said on Thursday. "We expect the headline inflation in FY25 to cool off to 4.7 per cent. Monetary easing may be limited to 75 bps in FY26," Ind-Ra Chief Economist and Head Public Finance, Devendra Kumar Pant said. However, if the impact of US reciprocal tariff turns out to be higher than expected, there may be higher easing by RBI, Ind-Ra said in a statement. The RBI's monetary policy committee is scheduled to meet 6 times in the next fiscal 2025-26 beginning April 1. The first meeting is slated for April 7-9. "Ind-Ra expects the monetary policy committee (MPC) to opt in for a 25bps cut in policy rates in its forthcoming April 2025 meeting," the rating agency said. Higher and stubborn inflation had prompted the RBI to tighten the monetary policy, and it raised the policy rate by 250 bps between Ma

Favorable time to pick rate-sensitive stocks as analysts bet on RBI easing

The Nifty and Sensex indices have crashed around 14 per cent from their record highs, while the Nifty Bank is down 11 per cent

RBI likely to cut rates in April MPC meet as inflation drops below 4%: UBS

Swiss investment bank UBS believes an accommodative monetary policy could help India sustain growth amid rising global uncertainties and trade disputes

Economists expect 25 bps rate cut in April meeting to support growth

Net liquidity in the banking system was in a deficit of Rs 1.09 trillion as of Monday, according to the latest data by RBI

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

Corporate bond yields continue to harden despite RBI's repo rate cut

SBI, PNB, BoI expected to tap market for fund raise

SBI cuts home loan rate, EBLR by 25 bps after RBI's repo rate reduction

State Bank of India (SBI) has reduced its home loan rate by 25 bps to 8.25% and EBLR to 8.90%, following RBI's 25 bps repo rate cut to 6.25%, signalling easing rates in the system

RBI intervention boosts rupee to strongest weekly gain in 19 months

On Monday, the rupee slipped to an all-time low of 87.95 against the dollar, but the fall was limited as the RBI intervened by selling dollars in the spot market

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

RBI to postpone digital deposit buffer mandate for banks by 1 year

Originally proposed in July 2024, the RBI's guidelines required banks to set aside an additional 5 per cent 'run-off factor' on digitally accessible retail deposits

Experts believe RBI's rate cut to ease interest costs, support growth

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 MPC 2025 Highlights: Endeavour of RBI to provide as much as liquidity as required, says RBI Guv

RBI Monetary Policy Highlights: RBI Governor Sanjay Malhotra announced a 25 bps cut in the repo rate -- from 6.5% to 6.25%

Repo rate cut to provide long-awaited relief on interest rates: Experts

The repo rate cut by 25 basis points by the monetary policy committee (MPC) of RBI announced Friday will give a long-awaited relief on interest rates and also be supportive of economic growth, according to experts. Repo rate is the interest rate at which the RBI lends money to commercial banks. Chief economist of Crisil Limited Dharmakirti Joshi said that as expected, the MPC of the central bank cut rates for the first time since May 2020. The repo rate has been cut by 25 basis points which now stands at 6.25 per cent. Joshi said that 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

RBI's growth, inflation projection offers comfort to markets and investors

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

Rate cut as expected; FY26 growth forecast slightly optimistic: Aditi Nayar

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

Repo rate cut sends 'strong' signal to markets on low borrowing costs ahead

Given the current economic landscape, moderating inflation, and sluggish growth, another 25-50 bps rate cut within this calendar year remains a strong possibility