"monetary-policy"

Global brokerages expect the RBI to raise the repo rate by around 75 basis points through the first half of FY28, citing Middle East tensions, energy disruptions and El Niño risks. Rising food prices pushed India’s retail inflation to 5.54% in September

PHDCCI welcomed the RBI’s policy rate hike after 44 months and its shift to calibrated tightening, but called for future monetary decisions to remain data-dependent. It also stressed maintaining credit flows to productive sectors amid inflation, geopolitical and energy-price uncertainties

India’s government bond yield curve is expected to flatten further as the RBI withdraws surplus liquidity from the banking system. Analysts expect the five- to 10-year yield gap to narrow, with shorter-term yields facing upward pressure amid tighter liquidity conditions

SBI Research highlighted a communication divergence in the RBI’s latest monetary policy cycle, with MPC minutes appearing more hawkish while Governor Sanjay Malhotra adopted a cautious, data-dependent stance. Markets now face uncertainty over a possible October rate hike amid domestic and global risks

The Reserve Bank of India is expected to maintain a wait-and-watch stance and keep the repo rate at 5.25% amid easing global tensions. Policymakers will monitor monsoon progress, inflation trends and crude oil prices before making future policy decisions

Reserve Bank of India Governor Sanjay Malhotra warns West Asia conflict may entrench inflation via supply shocks, prompting a wait-and-watch stance on interest rates. He highlights trade exposure, forex resilience, rupee flexibility, and ongoing digital initiatives like UPI and Unified Lending Interface platform

The RBI’s latest policy decisions signal confidence in India’s strong economic outlook, with GDP growth for FY26 revised to 7.3 per cent. SBI Chairman CS Setty said the rate cut, neutral stance, and liquidity steps will support momentum while ensuring price stability

The RBI cut the repo rate by 25 bps to 5.25% to support growth, citing historically low retail inflation and strong 8.2% Q2 GDP. Despite rupee depreciation, the MPC maintained a neutral stance as cheaper loans are expected to boost economic activity

The Reserve Bank of India kept the repo rate unchanged at 5.5% for the second consecutive time, citing tariff uncertainties. Governor Sanjay Malhotra highlighted risks to growth despite easing retail inflation, which fell to a six-year low in August 

The rupee moved in a narrow range in early trade on Friday, ahead of the RBI’s monetary policy announcement. Forex markets remained cautious amid expectations of a rate cut. The currency opened lower but recovered slightly against the US dollar.

The RBI Governor’s remarks came at a media briefing on being asked if more interest rate cuts are in the offing

“With massive 104 per cent tariffs on China expected to take effect today, markets are in turmoil and uncertainty is at its peak. The future of global trade and the broader economy amid this chaos is still unclear,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Forex traders noted that even with a sharp decline in crude oil prices and a weakening US dollar, concerns over a potential global trade war continued to spark fears of an economic downturn, triggering foreign fund outflows and leaving stock markets in a state of shock.

Prior to his promotion as ED, Indranil Bhattacharyya was serving as Adviser in the Monetary Policy Department of the RBI

Purchases in banking and IT stocks contributed to the positive market trend. The 30-share BSE Sensex rose by 123.45 points, or 0.15%, to reach 81,758.26 in early trade. Meanwhile, the NSE increased by 39.65 points, or 0.16%, to 25,052.80.

Most major central banks have shifted towards rate cuts, with the US Fed recently lowering rates by 50 basis points. Meanwhile, the RBI has kept its accommodative stance. The focus now turns to whether the central bank will transition from this accommodative position to a more neutral approach.

Opens at 83.95 against the greenback, touches 83.89

At the interbank foreign exchange, the rupee opened at 82.94 against the dollar, later reaching 82.90, marking a 6 paise gain from its last close.

The RBI Governor also said that it is important for the monetary policy committee to keep track of price stability and act accordingly

At the interbank foreign exchange, the domestic unit opened at 82.59, registering a decline of 7 paise over its last close.