Page 2 - Repo Rate

RBI's 7-day VRRR receives significant demand due to reversal of ₹2 trillion

The RBI accepted Rs. 1.25 trillion in the 7-day VRRR auction at a cut-off rate of 5.49%, with a major uptick in demand after last week's Rs. 2 trillion reversal

WACR tops repo rate for the first time in FY26 amid GST outflows

The weighted average overnight call rate (WACR) breached the RBI's repo rate for the first time this fiscal, amid GST outflows, with liquidity surplus in the banking system at around 1% of NDTL

Overnight money market rates near policy repo rate post RBI's VRRR auctions

Overnight money market rates climb following the RBI's VRRR auction and GST outflows, with WACR approaching the policy repo rate

Bank NIMs may shrink by 30 bps in FY26 on loan repricing: Fitch Ratings

Fitch Ratings forecasts margin contraction in FY26 as 45% of bank loans reprice downward quickly; repo rate cuts and unchanged low-cost deposit share are key factors

RBI's liquidity steps to aid 100 bps rate cut transmission in 2025: Fitch

Credit rating agency Fitch Ratings says ₹5.6 trillion liquidity infusions and cash reserve ratio cut will support loan growth, though banks may see short-term pressure on margins

RBI's 3-day VRRR sees weak demand amid GST outflows, reporting week

Banks park only ₹57,450 crore in RBI's ₹1-trillion three-day VRRR as they conserve liquidity ahead of GST payments and fortnightly reporting requirements

RBI set to conduct 7-day VRRR auction on Friday to absorb ₹2.5 trillion

The Reserve Bank of India will conduct a Rs 2.5 trillion seven-day reverse repo auction to absorb surplus liquidity from the banking system and align the weighted average call rate with the repo rate

RBI accepts ₹97,315 crore in VRRR auction; cut-off rises to 5.49%

Market cautious ahead of expected ₹2 trn VRRR auction as call and TREP rates rise; overnight WACR climbs to 5.34%, RBI absorbs ₹97,315 crore against notified ₹1 trn

Banking system liquidity surplus tops ₹4 trillion; strong VRRR demand

Liquidity jumps on government spending and surplus transfer; RBI gets ₹1.7 tn bids at 7-day VRRR, with cut-off at 5.47%; experts see preference for shorter operations

More VRRRs likely as banking system liquidity surplus hits ₹3.31 trn

Despite RBI's VRRR auction, liquidity surplus rose to its highest in weeks, keeping overnight rates near the SDF rate and prompting expectations of further auctions

RBI extends trading hours of call money, repo, tri-party repo markets

RBI extends interbank call money hours to 7 pm from July and repo, TREP market hours to 4 pm from August following a working group review of trading timings

Impact of India's large rate cut may be limited, says rate panel member

The MPC delivered a larger-than-expected 50-bp rate cut in June to bolster economic growth as inflation remained below target

'Front-loaded' repo rate cut meant to spur demand, show MPC meeting minutes

The Reserve Bank of India's rate-setting panel delivered a 50 basis points interest rate cut earlier this month and announced liquidity measures for the banking system

AU SFB hits new high, zooms 60% from April low; brokerages see more upside

Since June 6, AU Small Finance Bank has rallied 11 per cent after the Reserve Bank of India (RBI) Monetary Policy Committee (MPC) cut the policy repo rate by 50 bps to 5.5 per cent

Nifty Realty up 2% in subdued market, Sunteck, DLF gain upto 4%; here's why

Thus far in the month of June 2025, the realty index has outperformed the market by surging 9.4 per cent, as against 0.5 per cent gain in Nifty 50

What works in central banking? Striking a balance between talk and action

The latest monetary policy has also gone for a 50-basis-point rate cut, double the anticipated reduction

Five-year G-sec yield spikes 22 bps in 3 days on VRRR auction fears

Bond market spooked by fears of potential VRRR auction as 5-year G-sec sees steepest 3-day spike in yields since 2022, amid uncertainty on RBI's liquidity stance

Change of stance to neutral doesn't mean pause on rate cut: Economists

The MPC, last week, cut the policy repo rate by 50 basis points (bps) to 5.5 per cent, surprising markets, which had largely priced in a more modest reduction of 25 bps

RBI to end daily VRR auctions from June 11 as liquidity improves

With net banking system liquidity in a surplus and muted demand from lenders, RBI discontinues daily Variable Rate Repo auctions introduced in January

RBI to discontinue daily variable rate repo auctions from June 11

The RBI started conducting daily VRR auctions on every working day from January 16, when banks were grappling with tight liquidity conditions