Governor Sanjay Malhotra of the Reserve Bank of India With underlying inflation expected to remain benign and growth prospects appearing strong, policy rates are likely to remain at low levels for a long time, Reserve Bank of India Governor Sanjay Malhotra told reporters at a post-monetary policy committee (MPC) press conference on Friday. Edited excerpts: […]
Economists favor continuity because the framework produces predictable monetary policy outcomes | Photo credit: REUTERS The Reserve Bank of India (RBI) is likely to retain the core components of the flexible inflation targeting (FIT) framework as a majority of economists believe the model of targeting headline inflation at core inflation and maintaining a retail inflation […]
The Reserve Bank of India (RBI) may cut the repo rate by 25 basis points (bps) at its monetary policy meeting in February, bringing down the benchmark interest rate to 5 percent, a Union Bank of India report showed. The report highlighted that there is scope for a final rate cut of 25 basis points […]
December 17, 2025 Image source: Pavel Kot/www.istockphoto.com The US Federal Reserve’s Open Market Committee, at its December 2025 meeting, cut the Fed Funds rate by 25 basis points (bps), which now stands at 3.5-3.75%, as expected. This decision was made as job growth slowed and unemployment rose. The Federal Reserve also noted that while U.S. […]
Retail inflation, as measured by the CPI, stood at 0.7% in November 2025, up slightly from 0.3% in the previous month. | Photo credit: FRANCIS MASCARENHAS With India’s Consumer Price Index (CPI) remaining well below 2 per cent for the past three months and inflation expected to remain favorable through the first half of FY27, […]
The MPC has changed the growth and inflation forecast in this policy | Photo credit: SUSHIL KUMAR VERMA The Monetary Policy Committee’s decision to cut the policy rate by 25 basis points to 5.25 percent at the end of its last bi-monthly meeting of 2025 on December 5 was contrary to the ‘consensus’ view of […]
The RBI has addressed market concerns over possible short-term liquidity drying up | Photo credit: ANUSHREE FADNAVIS With inflation hitting record lows, the Monetary Policy Committee (MPC) at its December 2025 meeting unanimously decided to cut interest rates by 25 basis points (bps) to 5.25 percent, while keeping its stance unchanged. While the soft CPI […]
Prospects of 10-year G-Sec yields falling further to 6.30-6.35 percent exist if both rate deals and repo rate cuts materialize | Photo credit: Yields on government bonds (G-Secs) could ease in the coming weeks in the wake of record low retail inflation, opening the possibility of a cut in repo rates and the likelihood of […]
On October 1, RBI had kept its policy interest at 5.5% unchanged for the second consecutive time, stating concern about the rate of uncertainties. | Photocredit: Francis Mascarenhas The Reserve Bank of India (RBI) has kept the possibility of future tariff reductions open, whereby its Monetary Policy Committee (MPC) is revised its inflation forecasts downwards […]
This is an important question from the market players, including banks and primary dealers, because the demand for G-SECs comes down with a longer rent because the proceeds have risen, even though the repo rate is reduced three times, cumulative with 100 basic points, since February 2025 | Photocredit: The possibility of higher government loans […]