RBI Monetary Policy Live: No decision has yet been taken on BRICS currency, says Shaktikanta Das

RBI Monetary Policy Live: 'Repo rate at 6.5% reflects a prudent, balanced approach'

“The RBI's decision to retain the repo rate at 6.5% was widely expected and reflects a prudent, balanced approach to managing growth while keeping inflation within the tolerable range. The reduction of the Cash Reserve Ratio (CRR) by 50 basis points is an encouraging move, as it will inject significant liquidity into the banking system, enhance banks' lending capacity, and improve credit accessibility for individuals. Markets had already anticipated today's policy to be neutral, with a positive sentiment reflected yesterday.” - Bajaj Broking Research Team

RBI Monetary Policy Live: 'CRR cut has marked the beginning of monetary easing,' says Aditya Birla Sun Life AMC

MPC kept policy rates & stance unchanged and added liquidity by cutting CRR. Given uncertain global scenario & stubborn food inflation, keeping rates on hold show RBI commitment to financial stability and inflation framework. Liquidity easing will enable bank to support growth needs. More data on growth slowdown will make growth focus measures in next year. We believe that CRR cut has marked the beginning of monetary easing which will likely gain steam once food inflation starts declining from December onwards. Absent a major global shock, conditions are ripe for a cut in February. - Kaustubh Gupta, Co-Head Fixed Income, Aditya Birla Sun Life AMC Ltd.

RBI Monetary Policy Live: 'CPI is expected to moderate over the coming months'

‘In its MPC meeting concluded today, RBI kept its policy rates on hold, in line with its steadfast focus on durably aligning CPI with the 4% target. Pertinent to note that it wasn’t unduly perturbed by sharp moderation in Q2 GDP growth, which it saw as transitory. It instead chose to wait for more confirmation of CPI cooling off, especially given two elevated prints since the last MPC meet. RBI however cut CRR by 50 bps to alleviate liquidity tightness caused by aggressive FX intervention in the recent weeks. Going forward, CPI is expected to moderate over the coming months and is projected to reach around 4% by Q2FY26, while GDP projections have been revised downwards by RBI. Given this backdrop, we continue to expect a shallow rate cut cycle ahead beginning in February.’ - Piyush Baranwal, Sr. Fund Manager (Fixed Income), WhiteOak Capital Asset Management

RBI Monetary Policy Live: 'RBI has walked a delicate balance between Inflation and Growth,' says Kotak Mahindra AMC

“The RBI has walked a delicate balance between Inflation and Growth by keeping repo rates unchanged and cutting CRR rates. Estimate of Growth is revised downwards while inflation is revised upwards to reflect the 2 Q GDP no.” - Nilesh Shah – MD, Kotak Mahindra AMC

• Private firms are hesitant to invest due to moderate demand, according to Shaktikanta Das.
• The ongoing growth slowdown is linked to inflationary pressures.
• Shaktikanta Das stated that their assessment indicates growth is beginning to pick up.
• Inflation during September and October was higher than anticipated, as noted by Das. (Read More)

RBI Monetary Policy Live: 'Yield curve has steepened post the CRR cut'

"RBI has started the monetary easing cycle by cutting CRR by 50bps to 4% while retaining status quo on other policy rates. The cut in CRR will release INR 1.16 lakh crore of liquidity in the banking system. The yield curve has steepened post the CRR cut with the money market curve up to 1yr outperforming the longer end of the curve.”  - by Puneet Pal, Head- Fixed Income, PGIM India Mutual Fund

• Expect tight liquidity over next few months, says Shaktikanta Das
• Expect currency circulation to rise, says Shaktikanta Das
• Main problem is investment in demand side, says Shaktikanta Das
• There has been a recovery after Q2 slowdown, says Shaktikanta Das

RBI Monetary Policy Live: 'Gold and other safe-haven assets might attract investor interest'

“The MPC decided to keep the benchmark repo rate unchanged at 6.5% for the 11th consecutive meeting, signaling a cautious stance on economic growth and inflation. In a bid to inject liquidity into the banking system, the MPC also slashed the Cash Reserve Ratio by 50 basis points to 4%, which will infuse ₹1.16 lakh crore into the system. Additionally, the RBI raised its CPI inflation target for FY25 to 4.8% from the earlier 4.5%, citing inflationary pressures, especially from food prices. Consequently, the RBI revised its GDP growth forecast for FY25 downward, reducing it from 7.2% to 6.6%, reflecting the challenges posed by global uncertainties and domestic factors. Governor Das also announced an increase in the limit for collateral-free agricultural loans to ₹2 lakh per borrower and proposed a new benchmark secured overnight rupee rate to enhance transparency and liquidity in the money markets. The measures aim to strike a balance between liquidity support, inflation control, and growth stimulation. The rupee could benefit from increased foreign inflows, while bond yields may remain elevated due to inflation concerns. Gold and other safe-haven assets might attract investor interest.” - Vinit Bolinjkar- Head of Research at Ventura Securities

RBI Monetary Policy Live: 'Markets appear to have factored in these developments'

RBI MPC Committee in its policy meeting, decided against cutting the repo rate which stands unchanged at 6.5% on the back of headline CPI inflation surging upwards towards 6.2%. Further, the MPC committee also cut the GDP growth projection to 6.6% for the current financial year, from an earlier forecast of 7.2% indicating a weakness in the overall economy. However, on the positive side, RBI decided to cut banks (CRR) ' cash reserve ratio by 50 basis points to 4% in two tranches of 25 basis points each, kicking in on Dec. 14 and Dec 28 to increase the lendable financial resources. Markets, however, appear to have factored in these developments and are likely to consolidate in the coming weeks. - Aamar Deo Singh, Sr. VP Research, Angel One Ltd

• Credibility of inflation target has to be reserved, says RBI guv
• Effort is to keep inflation horse in a tight leash, Shaktikanta Das says
• Growth in H2 looks better than H1 of FY25, Das says

RBI Monetary Policy Live: RBI will use various policy instruments to restore growth-inflation balance: Das

RBI Monetary Policy Live News: RBI will use various policy instruments to restore growth-inflation balance, says Shaktikanta Das

RBI Monetary Policy Live: ICRA flags repo cut chances if inflation eases

The Monetary Policy Committee (MPC) decided to keep the repo rate unchanged at 6.5 percent, as expected, due to inflation surpassing the 6 percent threshold. However, the 50 basis points reduction in the Cash Reserve Ratio (CRR) is aimed at supporting growth, especially after a sharp downward revision in the FY2025 growth forecast. ICRA's chief economist, Aditi Nayar, noted that if CPI inflation falls below 5 percent by December 2024, the chances of a repo rate cut in February 2025 would increase. The RBI remains focused on inflation, which has stayed above its comfort zone of 2-6 percent, while also addressing concerns over India's GDP growth and global demand slowdown.

RBI Monetary Policy Live: RBI extends UPI credit to small banks

The Reserve Bank of India (RBI) has expanded the UPI-linked credit facility to include small finance banks, which were previously excluded. Initially launched in September 2023, this facility allows users to access instant credit through popular apps like BHIM, PayZapp, Paytm, and GPay. The credit, conceived by the National Payments Corporation of India (NPCI), offers a pre-sanctioned limit that can be used during transactions for goods and services.

RBI Monetary Policy Live: Why does the RBI change the CRR?

The RBI adjusts the CRR to manage inflation and liquidity in the economy. When inflation is high, the RBI increases the CRR to reduce the amount of money banks can lend, helping to control inflation. On the other hand, when the economy is slowing down, the RBI lowers the CRR to increase the amount of money available for lending, which can stimulate growth and investment.

By cutting the CRR now, the RBI is aiming to boost economic activity, particularly at a time when growth is slower than expected.

RBI Monetary Policy Live: Bank Nifty recovers after RBI's CRR cut

The Bank Nifty index bounced back sharply on Friday, December 6, following the Reserve Bank of India’s announcement of a 50 basis point reduction in the cash reserve ratio (CRR). After an initial dip due to the RBI’s decision to keep the repo rate steady at 6.5%, the index surged by over 600 points from its intraday low, reaching 53,850 by 10:30 AM.

The CRR cut, which lowers the reserve requirement to 4%, is expected to inject Rs 1-1.25 lakh crore into the banking system, boosting liquidity and supporting credit growth. Among banking stocks, Axis Bank led the rally with a 1.5% gain, while SBI and ICICI Bank rose by 0.9% and 0.8%, respectively. HDFC Bank and Kotak Mahindra Bank remained flat.

RBI Monetary Policy Meeting Live: India has emerged stronger, announces Shaktikanta Das

As a country we can derive satisfaction that we have not only emerged successfully but also stronger, says Das

• MuleHunter.Ai set up by RBI Innovation Hub
• MPC to wait for better visibility on inflation and growth outlook

• Enhancement of collateral free agri loan increased from 1.6 lakh per borrower to Rs 2 lakh per borrower
• Credit line on UPI to be extended to SFBs
• The RBI proposes to introduced new benchmark of secured overnight rupee rate which is based on all secured money market transaction i.,e, overnight market repo and treps.

RBI Monetary Policy Meeting Live: RBI to add podcasts to its toolkit for communication, says Shaktikanta Das

RBI to add podcasts to its toolkit for communication

RBI Monetary Policy Meeting Live: What announcement on FCNRB means

Foreign Portfolio Investment (FPI) inflows into Emerging Market Economies (EMEs) experienced a general decline in October. However, India has recorded net FPI inflows of $9.3 billion in FY25 so far. To boost capital inflows, the Reserve Bank of India (RBI) has announced an immediate increase in interest rate ceilings on FCNR-B deposits and raised FCNR deposit rates, aiming to enhance India's appeal as a destination for foreign investments.

RBI Monetary Policy Meeting Live: Fx retail platform to be linked to NPCI

Fx retail platform to be linked to Bharat connect platform of NPCI, announces Shaktikanta Das

RBI Monetary Policy Meeting Live: Spread on FCNRB increased from 250 bps to 400 bps

Spread on FCNRB increased from 250 bps to 400 bps

RBI Monetary Policy Meeting Live: Shaktikanta Das highlights gap between credit growth and deposit growth

RBI Guv Das highlighted the RBI's proactive approach to supervising the financial sector and its entities. He noted that the gap between credit growth and deposit growth in scheduled commercial banks has narrowed. The central bank remains focused on resolving issues in a non-disruptive manner, with business restrictions being imposed only in extreme cases. Ensuring stability in the banking system remains a top priority.

RBI Monetary Policy Meeting Live: 'A steady rate ensures consistent repayment terms'

"The RBI's decision to retain the repo rate at 6.5% for the 11th consecutive time is a balanced approach to manage growth and inflation. With India's GDP expected to grow at 6.5–7% in FY 2024-25 and the real estate sector contributing 7% to the economy, this stability is vital for maintaining economic momentum. A steady rate ensures consistent repayment terms, which increases the confidence of homebuyers and encourages investments in the sector. With property prices rising, stable lending conditions and a steady market make real estate a key driver of economic growth, boosting demand and contributing significantly to India's economic progress." - Manju Yagnik, Vice Chairperson of Nahar Group and Senior VP, NAREDCO, Maharashtra

RBI Monetary Policy Meeting Live: Shaktikanta Das on inoperative accounts

Banks advised to reduce the number of inoperative accounts and unclaimed deposits, says RBI Governor

RBI Monetary Policy Meeting Live: Shaktikanta DAs on VRRR

RBI conducted VRRR to manage liquidity in the system

• The RBI's decision to keep the repo rate unchanged is a great move for the real estate sector. As per the Knight Frank report, the sector currently valued at $493 billion and contributing 7.3% to India's GDP, we're optimistic about its future growth prospects. Our projections indicate that the sector will increase to Rs 5.8 trillion by 2047, accounting for 15.5% of India's economic output, making this stability in interest rates a timely and welcome move. This stability in interest rates is particularly beneficial for high-value markets like Mumbai and Pune.
• With steady interest rates, buyer confidence will likely increase, driving steady demand and supporting sector growth. Moreover, the positive correlation between tax relief measures and high-end property sales is expected to persist. The combination of stable interest rates and reduced stamp duty will continue to drive sales of properties. This favorable environment will benefit both developers and homebuyers, ultimately fostering growth in the real estate sector. - Vishal Jumani - Joint Managing Director, Supreme Universal

RBI Monetary Policy Meeting Live: RBI Monetary Policy Meeting Live: Shaktikanta Das cuts CRR by 50 bps to 4%

This is the first CRR cut since March 2020. CRR to be cut in two tranches of 25 basis points each.

RBI Monetary Policy Meeting Live: Necessary to monitor incoming data, says Das

It is necessary to monitor incoming data for confirmation on decline in inflation

Prudence and practicality demand that we remain sensitive to dynamically evolving situation

• Inflation FY25: 4.8%
• Q3: 5.7%
• Q4: 4.5%
• Q1 FY26: 4.6%
• Q2 FY26: 4%
• Risks are evenly balanced

• FY25 – 7.2% (Earlier) 6.6% (Now)
• Q2 – 7.0% (earlier) 7.0%% (Now)
• Q3 – 7.4% (Earlier) 6.8% (Now)
• Q4 – 7.4% (Earlier) 7.2% (Now)\\
• Q1FY26 – 7.3% (Earlier) 6.9% (Now)
• Q2FY26 - 7.3% (Now)

• Growth FY25: 6.6%
• Q3: 6.8%
• Q4 7.2%
• Q1 6.9
• 7.3%
• Risks are evenly balanced

• MPC remains committed to restoring inflation-growth balance in overall economy
• Growth turned out to much lower than anticipated caused by substantial decelerating of manufacturing growth
• The slowdown in economic activity bottomed out in the second quarter.
• Industrial activity also expected to recover

• SDF remains at 6.25%
• MSF and bank rate at 6.75%
• Continue with Neutral stance
• MPC believes that only with durable price stability can strong foundations be set for high growth
• Inflation is gradually moving towards the targets after multi decade high
• Outlook for global economy clouded by protectionism which has tendency to push inflation higher

RBI Monetary Policy Meeting Live: Shaktikanta Das keeps repo rate unchanged for 11th time, retains 'neutral' stance

RBI Monetary Policy Meeting Live: Shaktikanta Das keeps repo rate unchanged for 11th time, retains 'neutral' stance

RBI Rate Cut Live: Last mile of disinflation turning out to be prolonged, says Das

Last mile of disinflation turning out to be prolonged and arduous for economies

RBI Rate Cut Live: Price stability is very important for the people, says Shaktikanta Das

RBI MPC Live News: Price stability is very important for the people, but  growth is also important, says Shaktikanta Das.

RBI Rate Cut Live: Shaktikanta Das begins speech

RBI MPC Live News: Reserve Bank of India Governor Shaktikanta Das has begun his speech.

RBI Rate Cut Live: From Nirmala Sitharaman to Piyush Goyal, top ministers bat for rate cut

RBI MPC Live News: Calls for lower interest rates were gaining momentum even before the release of the September quarter GDP data, which reported growth at 5.4%, falling short of the expected 6.5%. Both Finance Minister Nirmala Sitharaman and Commerce Minister Piyush Goyal had expressed their views on the matter.

• Cyclical slowdown seen in market
• There Are Early Signs Of Pick Up And Expect Government Spending To Come In
• Expect first half of next year to see growth pick up in India
• Sensex target is 93,000 by December 2025
• Not alarmed about situation in India, it looks good to us
• India is one of the top 3 preferred markets for us, globally
• Emerging markets as an asset class doesn’t makes any sense, any more
• China is seeing a fall in earnings growth
• India’s nominal GDP growth rate 2.5x of China
• Indian corporate earnings are compounding in double digits
• Rupee is more stable than Chinese currency
• Remain overweight financials across major equity markets
• Like IT services names too, globally
• Underweight on defence and energies

RBI Rate Cut Live: Immediate bond sell-off?

If no action is taken on rates or liquidity, an immediate bond sell-off could occur, pushing the benchmark bond yield up to 6.75% and stabilizing around that level. - PNB Gilts MD Vikas Goel

•  Liquidity management is the sole responsibility of the RBI, and a CRR cut appears likely.
• “The banking system's liquidity has tightened due to the RBI's efforts to stabilize the rupee, including substantial dollar sales, which have impacted overall liquidity. In December, liquidity is expected to tighten further because of outflows related to advance tax payments, GST, and quarter-end credit demand,” said Madan Sabnavis, Chief Economist at Bank of Baroda.
• “Under these circumstances, the RBI may consider a permanent measure, such as a CRR cut or an Open Market Operation (OMO) purchase,” he added.

RBI Rate Cut Live: Shaktikanta Das arrives

RBI Governor Shaktikanta Das has reached the RBI headquarters ahead of the 10:00 am announcements

• The Cash Reserve Ratio (CRR), currently at 4.5%, represents the proportion of a bank’s total deposits that must be held in liquid cash with the RBI as a reserve. It serves as a tool for the RBI to control inflation and regulate excessive lending.
• While the Monetary Policy Committee (MPC) decides on the repo rate and policy stance, managing liquidity falls exclusively under the RBI’s jurisdiction. Analysts suggest the RBI may opt to lower the CRR by either 25 or 50 basis points (bps).

• Cutting interest rates to boost economic growth faces hurdles due to rising inflation.
• Retail inflation climbed to 6.21% in October, surpassing the RBI’s target range for the first time in a year.
• HSBC economists predict: The RBI may reduce the Cash Reserve Ratio (CRR) by 50 basis points.
• Additional liquidity measures could follow in the coming months. "It's time to act, strategically," HSBC economists stated.

• BofA Securities expects the Reserve Bank of India (RBI) to hold interest rates steady, emphasizing that, despite sluggish economic growth, currency exchange dynamics will play a crucial role in shaping policy decisions.
• "The recent outflows from equity markets and pressure on the rupee have added a new dimension to the policy framework, prompting significant intervention by the RBI," BofA noted.
• "A sharp depreciation of the rupee could heighten concerns about financial stability and imported inflation." India's economy has shown signs of slowing, with GDP growth during the July-September quarter hitting a seven-quarter low.

•  We closely monitor the potential turn in the interest rate cycle and the overall pace of monetary easing, as these factors will significantly impact the underlying margin trajectory. Additionally, progress in deposit mobilization will be critical, as an elevated CD ratio and rising inflation rates will make it challenging for lenders to reduce deposit rates and, consequently, lower their funding costs.
• Banks with a higher proportion of fixed-rate loans and a lower duration of liabilities are expected to report more resilient NIM performance over FY26. However, we remain cautious about the ongoing delinquency cycle in unsecured loans and the associated interest reversals, as high credit costs and an adverse asset mix will exert pressure on banks' profitability.
• PSU Banks: Earnings momentum of PSU Banks remain strong leading us to raise our FY25 projections by 1.5%. However, with RoA profile nearly maturing, we estimate earnings growth to broadly track loan growth at 10-11% CAGR over FY25-27E. Headwinds on margins and potential rise in credit cost remains a key risk. Top picks: ICICI, HDFCB, SBI, FB, and AUBANK.

RBI Rate Cut Live: Rupee opens

RBI MPC Meeting Live Updates: Rupee opens at 84.64/$ vs Thursday’s close of 84.73/$

RBI Rate Cut Live: 'Central bank’s commentary on the growth and inflation outlook will be keenly watched'

RBI MPC Meeting Live Updates: "FIIs turning buyers in December, in total reversal of their sustained selling strategy during the last two months, has altered the market sentiments in favour of the bulls. Encouraged by the FII buying, retail investors, too, have jumped on to the buying bandwagon. This has triggered short-covering leading to sharp intra-day volatility. The 500-point swing in Nifty from the peak to the trough yesterday indicates a tug-of-war between the bulls and the bears. The best strategy in this volatile context would be to remain invested with higher weightage for largecaps, where there is valuation comfort. The policy response of the RBI and the central bank’s commentary on the growth and inflation outlook will be keenly watched by the market today." - Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services:

RBI Rate Cut Live: CRR and global landscape

RBI MPC Live Updates: The global landscape is growing more challenging, with markets bracing for a stronger dollar, rising capital costs, and substantial investment flows returning to the US. These factors could constrain the RBI’s options if economic growth slows significantly. In such a scenario, the central bank might explore non-rate measures, with a Cash Reserve Ratio (CRR) cut being a potential consideration, according to Suman Chowdhury, Executive Director & Chief Economist at Acuitè Ratings.