The announcement was among a number of measures the central bank revealed for better customer protection and digital payments safety
Nifty holds 26,000 ahead of the RBI policy, realty stocks stay upbeat, while Nifty Bank reverses course. FMCG gains but midcaps slip back into the red as market breadth turns negative. Join Nandita Khemka and Yatin Mota in conversation with Mayuresh Joshi (MarketsmithIndia) and Vishal Malkan (MalkansView) for key insights on market trends and RBI expectations.
RBI Governor Sanjay Malhotra will announce the October MPC outcome on October 1. Economists expect a pause at 5.5%, though inflation forecasts may be revised.
Benign inflation and sluggish credit raise chances of a cut, though the base case remains an extended pause
While majority of the analysts expect RBI to keep rates steady this time, after a massive 50 basis points rate cut during the previous meeting, some predict a 25-bps cut amid sharp drop in inflation numbers.
RBI MPC Meeting Highlights: GDP growth projection unchanged at 6.5% for FY26. CPI inflation projections reduced to 3.1%.
RBI MPC meet: The stress witnessed earlier in retail segments like unsecured personal loans and credit card receivables portfolio has abated, while the stress in micro-finance segment is persisting, says Governor Sanjay Malhotra
RBI MPC Meet: India’s annual retail inflation had eased to 3.16% in April from 3.34% in March.
Market experts are unhappy that the RBI did not announce any further “liquidity easing measures” as part of the policy announcements today
This comes after the Reserve Bank of India's MPC cut the central bank's repo rate by 25 basis points to 6.25 percent. The rate cut marks the first cut since May 2020. However, the RBI maintained its 'Neutral' stance.
The RBI reduced the Cash Reserve Ratio (CRR) by 0.5% (50 basis points) to 4%.
In October, India's retail inflation surged to a 14-month high of 6.21 percent year-on-year (YoY).
The MPC projects CPI inflation for FY 2024-25 at 4.5%, with quarterly estimates of 4.1% for Q2, 4.8% for Q3, and 4.2% for Q4.
RBI MPC meeting: A prolonged rate pause and liquidity withdrawal, with a rate cut only in the second half of FY 25 — experts, bankers and economists share their thoughts