Avoided rate cut in Oct as it will not have desirable impact, says Sanjay Malhotra
Governor Sanjay Malhotra announced that the repo rate remains unchanged at 5.5% and said the regulatory ceiling on lending against listed debt securities will be removed, making it easier for investors to access credit.
The Reserve Bank of India (RBI) today maintained a status quo on repo rate and policy stance, highlighting India's favourable growth-inflation dynamics. Meeting Street expectations, RBI Governor Sanjay Malhotra-led Monetary Policy Committee (MPC) kept the repo rate unchanged at 5.5 per cent, and maintained the policy stance as ‘neutral’. RBI MPC addresses the media after the monetary policy announcement.
GST cut may not completely offset tariff impact on GDP growth, says RBI Governor
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.
RBI faces a policy test: lower inflation, higher growth forecasts. Markets await dovish signals beyond rate action in October policy.
Since February 2025, RBI has trimmed repo rates by 100 bps from 6.5% to 5.5% after it held rates steady in August .
Some market veterans believe that more than the rate cut, investors may find support from a change in stance by the central bank, signalling a dovish tilt by the RBI.
The sharp increase in the liquidity can be attributed to the durable liquidity infusion since start of this year by the RBI through various instruments such as open market operations (OMOs) purchases of governments securities and USD/INR buy-sell swap auctions.
Another rate cut may be at a bay until the last mile transmission of the 100 bps reduction from February is fully reflected in economy. Equally, the possible impact of macro uncertainties on economic growth may play a larger role in deciding the rate trajectory from hereon.
The central bank’s proposal is aimed at ensuring hassle-free settlement of claims made by nominees and legal heirs
LIVE: Monetary Policy statement by RBI Governor Sanjay Malhotra | Interest rate | India |Sensex |BSE
Inflation expected to go up from Q4FY26, says Governor Sanjay Malhotra
After the announcement of RBI's July policy decision, Bank Nifty fell marginally, while Nifty Auto and Realty indices declined in the range of 0.4-0.8 percent.
Before Trump’s announcement, most economists had expected no change in rates following the governor’s cautious stance in the June policy meeting
Before Trump’s announcement, most economists expected no change in rates following the governor’s cautious stance in the June policy meeting. The majority still expect RBI to hold this week, but a few have changed their forecasts recently.
Since February, the RBI has slashed the repo rate by 100 basis points cumulatively
As the Monetary Policy Committee meet starts on August 4, India awaits cues on whether the RBI will hold steady or surprise with a rate cut amid global trade tensions
The RBI is expected to hold rates in its August policy meeting, with analysts anticipating a downward revision to FY26 inflation estimates.
'The MPC will factor in the evolving situation, and then take a call as to what kind of rate and policy the economy really needs. If the inflation is lower, the forecast is lower, growth is lower, certainly the rates can be cut,' the RBI Governor said during an interview with CNBC-TV18.
A 100 bps rate cut since February 2025 is seen as a positive step to boost demand for loans or consumption. However, the flip side is that deposit rates - especially for retail - are set to trend lower at a time when the overall savings rate itself is trending down.
RBI MPC meet outcome: The rally in metal stocks is in line with several rate sensitive sectors like banks and realty, as well as the overall stock market.
RBI has reduced its policy repo rate by 50 basis points to 5.5 percent, and has changed its stance to 'neutral' from 'accommodative'.
RBI revises inflation forecast for FY26 lower to 3.7% from 4%
RBI Repo Rate News Live: The outcome of the monetary policy committee's meeting is scheduled to be announced at 10 am today (June 6). The press briefing of governor Sanjay Malhotra can be watched online on the central bank's YouTube channel and on Moneycontrol.com.