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    RBI Monetary Policy

    Formulated and conceived by the RBI (Reserve Bank of India), the monetary policy details the monetary matters and policies of the country. These matters include regulating the supply and availability of money in the Indian market and the credit scenario and its cost in the economy. This is done via managing the bank rates, interest rates, currency supply, variations in reserve requirements, open market operations and more. The policy also oversees the distribution of credit among users as well as the borrowing and lending rates of interest. In a country like India, monetary policy is very important in the promotion of economic growth. The monetary policy framework aims to set the policy repo and reverse repo rates as per the country’s prevailing macroeconomic situations. By making adjustments in these monetary policy measures, the apex bank aims at modulating the liquidity conditions in the market. The rise and fall in these rates decide the levels of savings and investments in the country, inflation levels, controlling exports and imports and monitoring the aggregate demand in the economy. This policy also helps in assessing which sectors in the country are in dire need of monetary support and allocate credit accordingly. The key indicators of monetary policy include CRR, SLR, Repo and Reverse rate, Bank rate and the Marginal Standing Facility Rate. More

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    • RBI cuts rates amid benign inflation and strong growth: The perfect hook shot

      Overall, it was a well-balanced policy, and we expect a long pause in this cycle—much like a batter choosing not to swing at every delivery after finding the boundary early in the test innings.

    • RBI’s forward guidance stays dovish, but offers no clear signal of a February rate cut

      The floor for the repo rate in this cycle has already been hit. This is because the guidance for H1FY27 Headline CPI is at 4 percent and with the current repo rate at 5.25 percent, the real gap is low at 1.25 percent.

    • RBI MPC Analysis: Forget Rupee, focus on growth - the straight message from RBI Governor

      Loans are set to get cheaper once again, which signals that banks are expected to play a pivotal role in lifting domestic growth, just like they did post pandemic. Is the market dynamics in favour of a quality credit growth; that’s the challenge ahead.

    • Julius Baer's Unmesh Kulkarni sees rate cut pause in Feb meet, says RBI not worried about rupee's fall

      The MPC might want to see improved transmission of the cumulative rate cuts carried out so far.

    • Experts pick 10 rate sensitive stocks as RBI slashes repo rate, revises FY26 GDP growth forecast upward

      The rate cut and upward revision in economic growth forecast was on expected lines given the fall in CPI inflation and sharp growth in economic numbers in September 2025 quarter.

    • RBI MPC | Is RBI preempting liquidity tightening in later part of December?

      RBI cut repo rate by 25 bps and announced OMOs plus a USD/INR swap to inject durable liquidity ahead of December tax outflows, easing rate and liquidity stress.

    • RBI reduces FY26 inflation forecast to 2%

      RBI projected Q3 FY26 inflation at 0.6% as compared to 1.8% earlier, and Q4 at 2.9% as compared to 4.0% earlier.

    • RBI MPC Highlights: Interest rate cut 25 bps, Rs 1 lakh cr OMO and $5 bn swap unveiled; GDP forecast raised to 7.3%

      The RBI cut the repo rate by 25 bps to 5.25 percent as was widely expected, announced Rs 1 lakh crore of OMOs and a 3-year dollar–rupee swap, and raised FY26 GDP growth forecast to 7.3 percent.

    • RBI monetary policy on Friday; mixed expectations on rate cut, status quo

      The meeting is taking place against the backdrop of falling inflation, rising GDP growth, the rupee crossing 90 against the dollar and ongoing geopolitical tensions.

    • Why is rate cut a tough call for RBI? Six factors to track in the December MPC meeting

      Experts are of the view that the central bank will announce some measures on the liquidity front such as Open Market Operations (OMO) purchases to support banking system liquidity during time when the activity in the forex intervention has increased after rupee crossed 90-mark.

    • RBI to announce monetary policy amid expectations of 25-basis point reduction in repo rate

      The MPC started its three-day deliberation on the next set of bi-monthly monetary policy on Wednesday.

    • Mixed signals ahead of monetary policy: Kotak Mahindra AMC sees a 50% probability of a 25 bps rate cut

      Deepak Agrawal of Kotak Mahindra AMC expects the RBI to revise its FY26 GDP growth forecast above 6.8 percent.

    • 17 of 20 experts back December rate cut despite GDP uptick; banks’ margins at risk

      The RBI has so far reduced repo rate by 100 bps from 6.5% to 5.55 between February and June. After that, it RBI has maintained a status quo in the August and October policies.

    • MC Poll: RBI MPC may cut rates by 25 bps in December meet as low inflation offers comfort

      The MPC will meet between December 3 and 5 for another round of rate setting deliberations.

    • RBI policy provides a dovish tweak, bar for further rate easing remains high

      Overall, the wait-and-watch policy of the RBI is prudent as it factors in incoming data prints into its reaction function.

    • Despite moderating growth and lowered inflation forecast, why did RBI MPC hold off on rate cut in October?

      While the MPC voted unanimously to keep policy rates unchanged, a couple of MPC members expressed their views for changing the policy stance from ‘neutral’ to ‘accommodative’.

    • RBI Policy: Details of measures announced to promote ease of doing business

      These measures include consolidation of large number of circulars and directions of the RBI, measures related to strengthen export sector, and review of restrictions on transaction accounts.

    • RBI MPC October policy signals dovish tone, opens up space for future rate cut

      Given the backdrop, the commentary by the RBI Governor was dovish as compared to neutral to hawkish in August policy.

    • RBI MPC Analysis: It’s a pro-banks, pro-India Inc economic policy

      Even if devil lies in details, many demands of the banking sector have been granted in one stroke of the wand. Over the next 3 – 5 years, some of the regulatory decluttering can go a long way in reshaping the business of banking.

    • RBI guidelines on bank business and investment drops proposed bar on overlap with group firms

      The circular envisages to streamline the activities being undertaken by banks and their group entities while providing more operational freedom to the banks and NOFHCs for equity investments and setting up group entities respectively, RBI said.

    • RBI proposes enabling framework for banks to finance acquisitions by Indian corporates

      The RBI’s Monetary Policy Committee (MPC) decided to keep the benchmark repo rate unchanged at 5.5 percent on October 1, for the second time in a row.

    • RBI proposes revamped ECB framework to expand access, ease restrictions and simplify rules

      The RBI’s Monetary Policy Committee (MPC) decided to keep the benchmark repo rate unchanged at 5.5 percent on October 1, second time in a row.

    • RBI extends repatriation deadline for export proceeds held in IFSC accounts to 3 months

      In January, the RBI permitted Indian exporters to open foreign currency accounts with a bank outside India for realisation of export proceeds

    • Experts pick 10 rate-sensitive stocks after RBI keeps rates unchanged

      Moneycontrol collated a list of the top 10 rate-sensitive stocks, curated by experts with a 3–4-week perspective on the basis of the closing price of September 30, following the Reserve Bank of India's decision to maintain the status quo on rates.

    • RBI's draft norms for standardised approach to credit risk coming soon

      The revised framework aims to improve the robustness, granularity and risk sensitivity of the standardized approach for calculating the capital charge for credit risk. The draft guidelines shall be issued shortly, RBI Governor said.

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