Rate cut expected in Q3FY25, RBI faces liquidity challenge: SBI Research
6 months, 2 weeks ago

Rate cut expected in Q3FY25, RBI faces liquidity challenge: SBI Research

Hindustan Times  

SBI Research, in its recent analysis, predicts that the c is likely to initiate its first rate cut in the third quarter of the financial year 2024-25. Regarding the RBI's stance on the repo rate for monetary policy to be announced on Friday, SBI Research suggests that the central bank should continue with its approach of withdrawing accommodation. The SBI research analysis suggests that achieving a 7.5 per cent growth rate for FY25 seems plausible, with average inflation projected at 4.5 per cent. To address the evolving liquidity landscape, the RBI may need to employ more innovative tools, particularly as government cash balances are expected to remain outside the banking sector due to the JIT mechanism. Looking ahead, SBI Research anticipates healthy credit growth in the range of 14-15 per cent in FY25, albeit with some moderation due to higher interest rates and regulatory actions by the RBI.

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History of this topic

RBI May Begin Shallow Rate Cut Cycle From Feb Amid Global Turmoil
1 week, 2 days ago

RBI May Begin Shallow Rate Cut Cycle From Feb Amid Global Turmoil

Deccan Chronicle  

Mumbai: While calls for rate cuts are growing louder with inflation decelerating in November amid concerns over slowing economic growth, economists see a small window of conventional rate cuts next year as global dynamics turn more fluid. Most expect the central bank to begin a shallow rate-cut cycle in its February 2025 policy meeting with a 25 basis points rate …

Indian Q2 growth below expectations, recovery signs emerge: SBI CAPS
2 weeks, 1 day ago

Indian Q2 growth below expectations, recovery signs emerge: SBI CAPS

Live Mint  

New Delhi: The Indian economy faced a sluggish start to FY25, with Q2 GDP growth falling below expectations due to monsoon disruptions, subdued government spending, weaker urban demand and a slowdown in lending, SBI CAPS said in a report on Monday. “The Q2 GDP slowdown stems from four key factors: monsoon disruptions hitting industry, subdued government spending stalling capex, weakening …

RBI Monetary Policy: MPC projects FY25 GDP growth at 6.6%; cuts estimates from 7.2% earlier
2 weeks, 4 days ago

RBI Monetary Policy: MPC projects FY25 GDP growth at 6.6%; cuts estimates from 7.2% earlier

Live Mint  

RBI Monetary Policy: Reserve Bank of India Governor Shaktikanta Das while announcing a status quo on the repo rate and policy stance on Friday, December 6, expects the FY25 GDP Growth to be at 6.6% The RBI Governor after the Monetary Policy Committee meeting, while pegged GDP growth rate to be at 6.6% for FY25, it expects ongoing quarter i.e …

RBI Monetary Policy: Inflation remains a concern; FY25 growth estimates trimmed-5 key highlights from RBI MPC outcome
2 weeks, 4 days ago

RBI Monetary Policy: Inflation remains a concern; FY25 growth estimates trimmed-5 key highlights from RBI MPC outcome

Live Mint  

RBI Monetary Policy: Highlighting sticky inflation and its impact on economic growth and consumers, Reserve Bank of India Governor Shaktikanta Das announced a status quo on the repo rate and policy stance on Friday, December 6. The Monetary Policy Committee of the central bank, by a majority of 4:2, decided to keep the repo rate at 6.50 per cent for …

RBI governor refuses to pay heed to Finance Minister, says GDP shocker is behind us
Trending News
2 weeks, 4 days ago

RBI governor refuses to pay heed to Finance Minister, says GDP shocker is behind us

New Indian Express  

The RBI on Friday refused to change its mind about interest rates despite economic growth hard landing in Q2, FY25. In fact, in his very opening remarks, Governor Shaktikanta Das sort of vowed to protect peace with blood reminding about the central bank's price stability mandate and its commitment to the flexible inflation target comes before everything else. The six-member …

How RBI tried to balance growth-inflation matrix with a CRR cut
2 weeks, 4 days ago

How RBI tried to balance growth-inflation matrix with a CRR cut

India Today  

The Reserve Bank of India continues with its tight vigil on inflation, not succumbing to pressure from the Union government to slash interest rates. At the end of the three-day meeting of its Monetary Policy Committee on December 6, the RBI announced that the repo rate—at which commercial banks borrow from the central bank—would remain unchanged at 6.5 per cent. …

RBI MPC meet: Growth needs a boost, but will inflation hold back rate cut?
Trending News
2 weeks, 6 days ago

RBI MPC meet: Growth needs a boost, but will inflation hold back rate cut?

India Today  

The Reserve Bank of India’s Monetary Policy Committee began its three-day meeting on Wednesday, setting the stage for a critical decision on the repo rate, which will be announced on December 6 at 10 AM. The meeting takes place amid growing calls from experts and leaders for a rate cut to support India’s slowing economic growth. Piyuh Goyal has even …

RBI MPC to start today: Will there be a rate cut? 3 things to know
Trending News
2 weeks, 6 days ago

RBI MPC to start today: Will there be a rate cut? 3 things to know

India Today  

The Reserve Bank of India’s Monetary Policy Committee begins its three-day meeting today. The Reserve Bank of India has kept the repo rate steady at 6.5% for the last nine policy meetings, and it appears likely to maintain this position in the upcoming MPC announcement as well. The RBI may opt for easing liquidity by announcing a 50-basis-point CRR cut, …

Will RBI cut key interest rates on December 6? 3 things to know
3 weeks, 1 day ago

Will RBI cut key interest rates on December 6? 3 things to know

India Today  

As the Reserve Bank of India’s Monetary Policy Committee gears up for its December 6 meeting, market participants are weighing the likelihood of a key interest rate cut. Here are 3 things to know ahead of the upcoming RBI MPC meeting: GROWTH REMAINS UNDER PRESSURE India’s GDP growth dipped to 5.4% in Q2 FY25, a sharp decline attributed to weaker …

India’s GDP growth estimated to decelerate to 6.3% in 2025, says Goldman Sachs; sees shallow RBI rate cut from Q1CY25
1 month ago

India’s GDP growth estimated to decelerate to 6.3% in 2025, says Goldman Sachs; sees shallow RBI rate cut from Q1CY25

Live Mint  

India’s economic growth is expected to decelerate in 2025, said Goldman Sachs even as it believes that the economy will likely be insulated from global shocks emanating out of a potential trade war between US and China. Though India’s strong long-term structural growth story remains intact, we forecast GDP growth to decelerate to 6.3% YoY in CY25, on continued fiscal …

RBI Bulletin: Battle Against Surging Inflation Will Be Dogged, Prolonged
2 years, 2 months ago

RBI Bulletin: Battle Against Surging Inflation Will Be Dogged, Prolonged

ABP News  

The Reserve Bank of India in its article on Monday said that the battle against inflation will be dogged and prolonged, given the long and variable lags with which monetary policy operates. Retail inflation spiked to 7.41 per cent in September, remaining above central bank’s upper tolerance level of 6 per cent for the ninth month in a row. With …

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