RBI's monetary policy review: Key highlights
10 years, 1 month ago

RBI's monetary policy review: Key highlights

India TV News  

New Delhi: As expected, the Reserve Bank of India has kept the repo rate unchanged at 7.75 per cent. However, the RBI has slashed statutory liquidity ratio -- the slice of deposits that banks necessarily have to invest in Government securities -- of scheduled commercial banks by 50 basis points from 22.0 per cent to 21.5 per cent of their deposits with effect from the fortnight beginning February 7, 2015. These conditions should augur well for a reinvigoration of private consumption demand, but the overall impact on growth could be partly offset by the weaker global growth outlook and short-run fiscal drag due to likely compression in plan expenditure in order to meet consolidation targets set for the year," the RBI said. The RBI had cut the rate on January 15, outside policy review cycle, from 8 per cent to 7.75 per cent. Here are the highlights of the RBI's bi-monthly monetary policy statement: * Short-term lending rate unchanged at 7.75 pc * Cash Reserve Ratio unchanged at 4 pc * Statutory Liquidity Ratio cut to 21.5 pc, effective February 7, to unlock banking funds * Current Account Deficit at 1.3 pc of GDP for 2014-15 * Inflation target at 6 per cent by January 2016 * GDP growth estimates under old base for current fiscal at 5.5 pc; 6.5 pc for 2015-16 * Banks asked to lend to productive sector to spur investment, growth * Limit of foreign exchange remittance doubled to $2,50,000 per person annually * 72 application for Small Finance Banks, 41 for Payments Banks received * Export credit refinance to be replaced with provision of system level liquidity, effective February 7 * Foreign portfolio investors allowed to re-invest in G-Secs after their investment limits are utilised * Bi-monthly policy statement for 2015-16 on April 7.

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History of this topic

RBI may cut repo rate by 25 bps in April; total 75 bps reduction likely in FY26: Ind-Ra
5 days, 8 hours ago

RBI may cut repo rate by 25 bps in April; total 75 bps reduction likely in FY26: Ind-Ra

Live Mint  

New Delhi, Mar 27 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 said on Thursday. "Ind-Ra expects the monetary policy committee to opt in for a 25bps cut in policy rates in its forthcoming April 2025 meeting," the rating …

RBI likely to maintain rate-cut cycle amid global growth challenges and inflation fall, finds HDFC MF report
6 days, 9 hours ago

RBI likely to maintain rate-cut cycle amid global growth challenges and inflation fall, finds HDFC MF report

Live Mint  

India's central bank is likely to continue its rate cut cycle amid global growth challenges and inflation reaching within target levels, according to an HDFC Mutual Fund report. The Reserve Bank of India's repo rate cuts are expected to continue as risk of headwinds in global growth looms large, especially due to the economic conditions in the United States, it …

India swap market prices in aggressive rate cuts by central bank in FY26
6 days, 12 hours ago

India swap market prices in aggressive rate cuts by central bank in FY26

Live Mint  

* Overnight index swap rates slide 10-15 bps in March * Economists now see three rate cuts this year * US tariff war hurts growth outlook, adds to rate cut case By Dharamraj Dhutia MUMBAI, - With inflation close to the Reserve Bank of India's target and growth weak, the country's overnight indexed swap markets have started pricing in far …

RBI to slash benchmark repo rates by 75 bps in 2025; 25 bps reduction each in April, June, October MPCs: SBI Report
2 weeks, 4 days ago

RBI to slash benchmark repo rates by 75 bps in 2025; 25 bps reduction each in April, June, October MPCs: SBI Report

Live Mint  

The Reserve Bank of India will likely slash the benchmark repo rate by a total of 75 basis points in 2025, with upcoming 25 bps reductions each in April, June, and October policy meetings. According to State Bank of India Research Ecowrap, experts believe India's consumer price index -based inflation will be 3.9 per cent in the fourth quarter of …

RBI to slash benchmark repo rates by 75 bps in 2025; 25 bps reduction each in April, June, October MPCs: SBI Report
2 weeks, 4 days ago

RBI to slash benchmark repo rates by 75 bps in 2025; 25 bps reduction each in April, June, October MPCs: SBI Report

Live Mint  

The Reserve Bank of India will likely slash the benchmark repo rate by a total of 75 basis points in 2025, with upcoming 25 bps reductions each in April, June, and October policy meetings. According to State Bank of India Research Ecowrap, experts believe India's consumer price index -based inflation will be 3.9 per cent in the fourth quarter of …

Mint Quick Edit | Inflation: In RBI’s control at last?
2 weeks, 5 days ago

Mint Quick Edit | Inflation: In RBI’s control at last?

Live Mint  

In January 2025, inflation was almost 4.3%. Policymakers at RBI would be heaving a sigh of relief, as the drop seems to validate their decision to cut interest rates last month in anticipation of a price cool-off. With concerns of economic growth having mounted, RBI’s next decision due in April could confirm a pivot away from inflation control to a …

Kaushik Das: Expect another RBI rate cut in support of economic growth
4 weeks, 2 days ago

Kaushik Das: Expect another RBI rate cut in support of economic growth

Live Mint  

In a widely anticipated move to balance the objectives of growth and inflation, the Reserve Bank of India reduced its repo rate by 25 basis points to 6.25% at the 7 February meeting of its Monetary Policy Committee, which voted unanimously for this cut. Looking ahead, RBI is expected to deliver another 25-bps rate cut in its April policy review, …

India’s Economic Growth Set to Pick Up Pace, RBI Says
1 month, 1 week ago

India’s Economic Growth Set to Pick Up Pace, RBI Says

Live Mint  

-- India’s economy has recovered its lost momentum and consumption demand may improve on the back of moderating inflation and tax relief, the Reserve Bank of India said in its monthly bulletin. According to the RBI report, robust monsoon-sown crop and better winter sowing, along with higher reservoir levels, “augur well for food inflation going forward.” But uncertainty in global …

Indian economy to pick momentum in H2FY25 amid tax relief, interest rate cuts: RBI Bulletin
1 month, 1 week ago

Indian economy to pick momentum in H2FY25 amid tax relief, interest rate cuts: RBI Bulletin

Live Mint  

The Indian economy will likely get a boost from the pick-up in rural demand and the income tax relief announced in the Union Budget 2025, which is expected to support urban consumption amid interest rate cuts. The Reserve Bank of India highlighted in its monthly economic bulletin on Wednesday, February 19, that India's urban consumption is “poised for a recovery.” …

Despite RBI's rate cut, spurring GDP growth is an uphill task
1 month, 3 weeks ago

Despite RBI's rate cut, spurring GDP growth is an uphill task

Live Mint  

The interest charged on loans is the most important price in an economy. Inflation held on a tight rein, RBI’s explicit mandate since 2016, is aimed not just at public relief on the cost of living, vital in itself, but also at easing the cost of capital: it lessens the risk of lenders being repaid less in real terms because …

Monetary policy: Surely, a rate cut could’ve waited for some clarity to emerge
1 month, 3 weeks ago

Monetary policy: Surely, a rate cut could’ve waited for some clarity to emerge

Live Mint  

Even in the otherwise arcane world of central banks, where rules have long displaced discretion and legislated mandates are the order of the day. How else can one explain the difference in policy outcomes at the February 2025 meeting of the Reserve Bank of India’s Monetary Policy Committee vis-à-vis its earlier meeting in December 2024? After the shift to ‘flexible …

Fiscal and monetary measures to boost consumption, private investment says FM
1 month, 3 weeks ago

Fiscal and monetary measures to boost consumption, private investment says FM

The Hindu  

Finance Minister Nirmala Sitharaman on Saturday said, “Fiscal and monetary measures announced recently will help boost consumption and promote private investment.” The Budget presented by the Finance Minister on February 1 proposed a slew of measures including significant income tax cuts for the middle class. On the monetary side, the Reserve Bank of India on Friday slashed the policy rate …

RBI Governor Sanjay Malhotra targets ‘investor-friendly’ India: How will the rate cut impact sluggish growth?
1 month, 3 weeks ago

RBI Governor Sanjay Malhotra targets ‘investor-friendly’ India: How will the rate cut impact sluggish growth?

Live Mint  

The Reserve Bank of India Governor Sanjay Malhotra said on Saturday, February 8, that the central bank aims to make India more investor-friendly, and the rates cuts are set to support growth and consumption in the nation, PTI reported. The Reserve Bank of India on February 7 announced a 25-basis-points rate cut to 6.25 per cent, to fuel the growth …

RBI repo rate cut, coupled with tax sops in Budget, could boost consumption
1 month, 3 weeks ago

RBI repo rate cut, coupled with tax sops in Budget, could boost consumption

India Today  

The Reserve Bank of India, in its first rate cut in nearly five years, has lowered the repo rate by 25 basis points to 6.25 per cent. We expect the MPC to cut another 75-100 basis points off the policy rate next fiscal,” said Joshi. Many experts had predicted that the MPC, chaired by new RBI governor Sanjay Malhotra, would …

DC Edit | RBI focuses on growth, takes a calculated risk
1 month, 3 weeks ago

DC Edit | RBI focuses on growth, takes a calculated risk

Deccan Chronicle  

With global uncertainties making India’s growth trajectory unclear, the Reserve Bank of India appears to have concentrated its focus on boosting growth rate under its new governor Sanjay Malhotra. As part of this agenda, the RBI led Monetary Policy Committee slashed repo rate by 25 basis points to 6.25 per cent. Malhotra, who is a career bureaucrat like Shaktikanta Das, …

RBI joins major central banks in easing monetary policy
1 month, 3 weeks ago

RBI joins major central banks in easing monetary policy

Deccan Chronicle  

Chennai: By lowering interest rates after a gap of five years, RBI has joined the leading central banks who have loosened their monetary policies for the sake of economic growth. The Bank of England cut its key interest rate by 25 basis points to 4.5 per cent and Bank of Mexico made a cut of 50 bps to 9.5 per …

RBI Monetary Policy: Is the rate cut a growth pill to boost demand? Here’s what it means for the Indian economy
Trending News
1 month, 3 weeks ago

RBI Monetary Policy: Is the rate cut a growth pill to boost demand? Here’s what it means for the Indian economy

Live Mint  

The Monetary Policy Committee of the Reserve Bank of India, led by Governor Sanjay Malhotra, has proposed a new repo rate of 6.25%. "Since the budget has proposed measures to propel domestic consumption and higher government capex, this rate reduction from RBI would further support growth," industry lobby grouping IBA's chairman M V Rao said in a statement. "Though additional …

RBI kicks off rate cut cycle—what it means for borrowers and markets
1 month, 3 weeks ago

RBI kicks off rate cut cycle—what it means for borrowers and markets

Live Mint  

The long-awaited policy rate easing by the Reserve Bank of India is finally here. Meanwhile, GDP growth, at 5.4% in the July–September 2024 quarter, is estimated at 6.5% for the full fiscal year—below India’s potential growth rate, warranting monetary support. The RBI is also introducing forward contracts in government securities, enabling long-term investors like insurance funds to better manage interest …

RBI's rate cut sets stage for further easing of interest rates in near term: India Inc
1 month, 3 weeks ago

RBI's rate cut sets stage for further easing of interest rates in near term: India Inc

The Hindu  

India Inc. welcomed the Reserve Bank of India’s move to slash the benchmark interest rate for the first time in nearly five years on Friday and asserted that it will complement the consumption-boosting measures announced in the last week’s Budget, providing much-needed support to the economy. Industry bodies were of the view that the Reserve Bank's 25 basis points rate …

RBI MPC meeting 2025: RBI projects 6.7% growth for FY’26 on better Rabi harvest, tax relief by govt
1 month, 3 weeks ago

RBI MPC meeting 2025: RBI projects 6.7% growth for FY’26 on better Rabi harvest, tax relief by govt

The Hindu  

Reserve Bank on Friday projected the growth rate for the upcoming financial year at 6.7%, up from 6.4% estimated for the current fiscal ending March. Healthy Rabi prospects and an expected recovery in industrial activity should support economic growth in 2025-26, RBI Governor Sanjay Malhotra said while announcing his first bi-monthly monetary policy for the current fiscal. Finance Minister Nirmala …

Mint Explainer | RBI's rate cut and how it will benefit retail borrowers
1 month, 3 weeks ago

Mint Explainer | RBI's rate cut and how it will benefit retail borrowers

Live Mint  

Mumbai: The Reserve Bank of India’s monetary policy committee on Friday delivered a much-anticipated rate cut of 25 basis points, taking the policy repo rate to 6.25%. The first rate cut in five years, the Monetary Policy Committee's decision will lead to lower equated monthly instalments or EMIs by retail borrowers by an equivalent amount, provided their rates are linked …

RBI cuts policy rate by 25 bps to 6.25 pc, first reduction in five years
1 month, 3 weeks ago

RBI cuts policy rate by 25 bps to 6.25 pc, first reduction in five years

Deccan Chronicle  

Mumbai: The RBI under new Governor Sanjay Malhotra on Friday cut interest rate for the first time in nearly five years as the central bank pivoted the policy stance to support a shuttering economy. The 25 basis points rate cut to 6.25 per cent comes after last rate reduction in May 2020. The Monetary Policy Committee unanimously decided to slash …

RBI Monetary Policy: Central bank projects FY26 real GDP growth at 6.7%
1 month, 3 weeks ago

RBI Monetary Policy: Central bank projects FY26 real GDP growth at 6.7%

Live Mint  

RBI Monetary Policy: In its sixth bi-monthly meeting for FY24–25, the Reserve Bank of India, projected real GDP growth at 6.7% for FY26. Delivering his first monetary policy statement as RBI Governor, Sanjay Malhotra stated that economic activity is expected to improve in the next fiscal year, with the manufacturing sector likely to pick up in the second quarter of …

RBI slashes repo rate by 25 bps, first cut in nearly five years; loan EMIs likely to come down
1 month, 3 weeks ago

RBI slashes repo rate by 25 bps, first cut in nearly five years; loan EMIs likely to come down

Firstpost  

The central bank’s Monetary Policy Committee reduced the repo rate by 25 basis points to 6.25 per cent, after having kept it unchanged for eleven straight meetings The RBI's MPC has cut the benchmark lending rates in the country after a long wait of nearly 5 years. PTI The Reserve Bank of India has cut interest rates for the first …

RBI Monetary Policy: Governor Sanjay Malhotra delivers 25 bps rate cut for first time in 5 years; 5 key takeaways
1 month, 3 weeks ago

RBI Monetary Policy: Governor Sanjay Malhotra delivers 25 bps rate cut for first time in 5 years; 5 key takeaways

Live Mint  

RBI Monetary Policy: In line with market expectations, the Reserve Bank of India Monetary Policy Committee decided to cut the repo rate by 25 bps for the first time in nearly five years and keep the monetary stance "neutral." “The MPC decided unanimously to reduce the policy repo rate by 25 basis points from 6.50 per cent to 6.25 per …

RBI MPC meeting 2025 highlights: RBI MPC cuts repo rate by 25 bps to 6.25%
1 month, 3 weeks ago

RBI MPC meeting 2025 highlights: RBI MPC cuts repo rate by 25 bps to 6.25%

Hindustan Times  

Feb 7, 2025 11:30 AM IST RBI MPC meeting 2025 LIVE updates: Sujan Hajra, Chief Economist & Executive Director, Anand Rathi Group said the following: • "In line with our expectations, the RBI, in its first MPC meeting of 2025, started easing monetary policy as the MPC unanimously decided to reduce the policy rate by 25 bps from 6.5% to …

RBI monetary policy: Will India’s central bank cut the repo rate now or wait? Top experts debate
1 month, 3 weeks ago

RBI monetary policy: Will India’s central bank cut the repo rate now or wait? Top experts debate

Live Mint  

RBI monetary policy: The Monetary Policy Committee of the Reserve Bank of India is deliberating on interest rates amid heightened uncertainty. However, some experts believe the central bank will consider other options to address the challenge of tighter liquidity and delay the rate cut until the next policy meeting in April. Bank of Baroda Experts at Bank of Baroda believe …

India cuts key interest rate for first time since 2020 amid slowing growth
1 month, 3 weeks ago

India cuts key interest rate for first time since 2020 amid slowing growth

Al Jazeera  

Reserve Bank of India announces first rate cut in nearly five years as world’s most populous nation faces slowdown. India’s central bank has cut its benchmark interest rate for the first time in nearly five years as officials try to reverse slowing economic growth in the world’s most populous country. The RBI last cut the key interest rate in May …

RBI May Deliver a Rate Cut After Five Years
1 month, 3 weeks ago

RBI May Deliver a Rate Cut After Five Years

Deccan Chronicle  

Mumbai: With the government unveiling a growth-supportive budget focused on fiscal prudence, all eyes are now on the Reserve Bank of India’s Monetary Policy Committee decision, scheduled for Friday. Economists widely expect the MPC to cut the repo rate—the rate at which RBI lends to banks—by 25 basis points to 6.25% in the upcoming meeting from February 5 to 7. …

Markets surge to one-month high; Focus shifts to RBI policy decision
1 month, 4 weeks ago

Markets surge to one-month high; Focus shifts to RBI policy decision

Live Mint  

Stock markets celebrated the Donald Trump administration's pause on tariff hikes on Canada and Mexico, adding nearly ₹6 trillion of wealth as investors bet that a full-fledged trade war is unlikely. “We expect RBI to improve durable liquidity and lower repo rates as growth is soft and the budget has delivered on fiscal prudence,” said Nilesh Shah, managing director of …

India’s CAD to widen to 1.3% of GDP in FY26 on export headwinds from Trump’s trade policies: Crisil
1 month, 4 weeks ago

India’s CAD to widen to 1.3% of GDP in FY26 on export headwinds from Trump’s trade policies: Crisil

Live Mint  

India's economy is expected to grow at 6.5 per cent in the next financial year 2025-26, slightly higher than the 6.4 per cent growth estimated for the ongoing fiscal year. “Lower inflation and the RBI's rate cuts are expected to lift growth next fiscal, assuming a normal monsoon and lower crude oil prices,” said Crisil. If India's inflation moves closer …

Budget done. Over to RBI now.
2 months ago

Budget done. Over to RBI now.

Live Mint  

Mumbai: After finance minister Nirmala Sitharaman delivered a consumption-supporting budget, the ball is now in the Reserve Bank of India's court to deliver the last-mile push to growth with a rate cut next week. Rate cut expectations rise Economists expect RBI to cut the repo rate by 25 basis points on 7 February when the Monetary Policy Committee completes its …

Delaying cuts will lead to more growth sacrifice; RBI must deliver 0.25 pc reduction in Feb review
2 months, 2 weeks ago

Delaying cuts will lead to more growth sacrifice; RBI must deliver 0.25 pc reduction in Feb review

Live Mint  

Mumbai, Jan 14 The RBI must start a rate cut cycle with a 0.25 per cent reduction in key rates at the next policy review in February, a German brokerage said on Tuesday. Delaying rate cuts will only lead to more sacrifice on growth, analysts at Deutsche Bank said, adding that the RBI also risks falling behind the curve if …

Mint Quick Edit | Inflation is down: Will interest rates follow?
2 months, 2 weeks ago

Mint Quick Edit | Inflation is down: Will interest rates follow?

Live Mint  

With inflation a bugbear for policymakers, it’ll be a relief that the year-end saw price pressures ease, even if only a bit. Government data released on Monday showed that India’s consumer price index rose 5.2% from a year earlier in December, slower than the 5.5% rise in November. Though it’s still above the 4% central target being pursued by the …

India’s fiscal deficit for FY26 expected at 4.4%-4.6% of GDP: Goldman Sachs
2 months, 2 weeks ago

India’s fiscal deficit for FY26 expected at 4.4%-4.6% of GDP: Goldman Sachs

Live Mint  

New Delhi: India's fiscal deficit could come in at 4.4% to 4.6% of GDP in FY26, Goldman Sachs Economics Research said in a report on Monday. The central government's “fiscal impulse will remain a drag on growth in the next fiscal year”, said the report titled ‘Asia in Focus—Union Budget Preview: Policy Choices in a Cyclical Growth Slowdown’. "We continue …

India’s economy projected to grow 6.4% in FY25, the slowest in four years
2 months, 3 weeks ago

India’s economy projected to grow 6.4% in FY25, the slowest in four years

Hindustan Times  

The Indian economy is projected to grow at its slowest pace in four years in the 2024-25 financial year on the back of weaker consumption and muted exports, with pressure building on the Reserve Bank of India to cut interest rates. Real or inflation-adjusted gross domestic product rose 6.4% in the 2025 fiscal, according to the first advance estimates released …

India's GDP Likely To Slip To 4-Year Low Of 6.4 Per Cent In FY25, Govt's Advance Estimates Show
2 months, 3 weeks ago

India's GDP Likely To Slip To 4-Year Low Of 6.4 Per Cent In FY25, Govt's Advance Estimates Show

ABP News  

India saw a slump in its growth in the 2024-25 fiscal year, first advance estimates from the government showed. The preliminary data released on January 7 stated that the growth of the Indian economy weakened to 6.4 per cent in the current financial year, marking the lowest level seen in four years. The advance estimates released by the authorities noted …

RBI may cut policy rates by 50 basis points in first half of 2025: Report
2 months, 4 weeks ago

RBI may cut policy rates by 50 basis points in first half of 2025: Report

India TV News  

The Reserve Bank of India is expected to reduce policy rates by 50 basis points in the first half of 2025, according to a report by Jefferies. This follows the central bank's shift to a neutral liquidity stance and its recent reduction of the Cash Reserve Ratio by 50 bps during the last Monetary Policy Committee meeting. "After easing stance …

Rupee tumbles 3 pc in 2024; turbulence to ebb in slow motion in next year
3 months ago

Rupee tumbles 3 pc in 2024; turbulence to ebb in slow motion in next year

Deccan Chronicle  

Mumbai: The Indian rupee tumbled 3 per cent in 2024 as concerns over slower economic growth and the green buck's global strength weighed, but it was among the least volatile currencies in the world and the headwinds may be less intense in the coming year. The RBI's log of the daily exchange rate movement of rupee versus major currencies showed …

India’s Government Cites Central Bank Policy for Slowdown
3 months ago

India’s Government Cites Central Bank Policy for Slowdown

Live Mint  

-- Follow Bloomberg India on WhatsApp for exclusive content and analysis on what billionaires, businesses and markets are doing. India’s government partly blamed the central bank’s tight monetary policy for the economy’s weak performance and said growth will likely improve in the second half of the fiscal year as demand picks up and restrictive measures ease. “The combination of monetary …

RBI’s monetary policy may have slowed demand: Finance Ministry
3 months ago

RBI’s monetary policy may have slowed demand: Finance Ministry

The Hindu  

The Finance Ministry on Thursday said the “combination of monetary policy stance and macroprudential measures by the central bank may have contributed to the demand slowdown” in the economy — remarks that come two days after a Reserve Bank of India monthly bulletin article mooted urgent action to “excoriate inflation” so as to lend a stronger push for consumption and …

Fed's rate cuts and hawkish outlook: Implications for Indian markets
3 months, 1 week ago

Fed's rate cuts and hawkish outlook: Implications for Indian markets

Live Mint  

The US Federal Reserve's decision to cut interest rates by 25 basis points in its December 2024 policy meeting has raised questions about how this move might influence India’s monetary policy and asset classes. With the Fed signalling a slower pace of rate cuts in 2025, foreign capital inflows into India could diminish, especially as US treasury yields become increasingly …

RBI: After another status quo year, all eyes on a growth-propping rate cut with new Guv at helm
3 months, 1 week ago

RBI: After another status quo year, all eyes on a growth-propping rate cut with new Guv at helm

Live Mint  

Mumbai, Dec 22 The RBI under former governor Shaktikanta Das resisted pressures to cut interest rates through 2024 as it kept its 'Arjuna's eye' trained on inflation, but the central bank under a new detail-oriented head will soon have to take a call if it can continue sacrificing growth. At his last policy announcement, Das said that the growth-inflation dynamic …

RBI’s monetary policy panel divided over timing of rate action
3 months, 1 week ago

RBI’s monetary policy panel divided over timing of rate action

Live Mint  

Mumbai: The rate-setting panel of India’s central bank remained divided over the timing of monetary policy action aimed at reviving India’s economic growth, even as they expect price rise to cool off, show minutes of the 6 December meeting, released on Friday. All three Reserve Bank of India members in the six-member monetary policy committee insisted that maintaining policy status …

India’s fiscal deficit will be 4.8 pc in FY25, below budget estimate of 4.9 pc: CareEdge Ratings
3 months, 2 weeks ago

India’s fiscal deficit will be 4.8 pc in FY25, below budget estimate of 4.9 pc: CareEdge Ratings

Live Mint  

New Delhi, December 16 : The fiscal deficit of the central government is projected to be 4.8 per cent of GDP for FY25, slightly below the budgeted estimate of 4.9 per cent, according to a report by CareEdge Ratings. It said "Overall, we project the fiscal deficit at 4.8 per cent of GDP, marginally lower than the budgeted 4.9 per …

Growth slowdown: Why lay a deeper economic malaise at RBI’s door?
3 months, 2 weeks ago

Growth slowdown: Why lay a deeper economic malaise at RBI’s door?

Live Mint  

Chapter 16 in the Book of Leviticus, Old Testament, enjoins Aaron to organize sacrifices and expiate the sins of all Israelites. Various ministers, government officials and sundry industry representatives have been hinting at RBI culpability in India’s economic slowdown and have called upon its monetary policy committee to cut rates in support of growth. The debate began with this year’s …

Why RBI is central to the country’s economy
3 months, 2 weeks ago

Why RBI is central to the country’s economy

New Indian Express  

The art of setting interest rates Maintaining macroeconomic stability and financial stability is the holy grail of any central bank. The pursuit of sustainable growth and low and stable inflation have been fundamental to central banking activities since the early 19th century, though financial stability got equal prominence, thanks to black swan events like the Great Depression of 1930s and …

RBI repo rate cut expectations build as CPI inflation moderates; Economists expect shallow rate-cut cycle from February
3 months, 2 weeks ago

RBI repo rate cut expectations build as CPI inflation moderates; Economists expect shallow rate-cut cycle from February

Live Mint  

India’s retail inflation in November aligned with market expectations and remained within the Reserve Bank of India’s tolerance band. Analysts anticipate that the RBI could initiate a shallow rate-cut cycle in its February 2025 policy meeting, provided inflation continues to decline. Hitesh Suvarna of JM Financial anticipates that the next step in RBI’s policy action will involve a rate cut, …

RBI cuts banks’ reserve requirements, a precursor to policy rate easing
3 months, 3 weeks ago

RBI cuts banks’ reserve requirements, a precursor to policy rate easing

Live Mint  

We have been talking about the Reserve Bank of India easing interest rates for quite some time. In the previous policy review on 9 October, the RBI changed its stance on interest rates from “withdrawal of accommodation" to neutral. Before the 9 October review meeting, the RBI had projected CPI inflation at 4.5% in FY25. At the previous meeting on …

SBI Research anticipates RBI repo rate cut in February policy meet
3 months, 3 weeks ago

SBI Research anticipates RBI repo rate cut in February policy meet

Live Mint  

New Delhi, December 8 : Reserve Bank is expected to cut repo rates in February 2025 and such a decision, it at all taken, is unlikely to be impacted by rupee's weakness against the dollar, asserted SBI Research in a report. The report put out the day RBI announced its monetary policy, the SBI Research report said it expects RBI …

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