The MPC will meet between December 3 and 5 for another round of rate setting deliberations.
Since February 2025, RBI has trimmed repo rates by 100 bps from 6.5% to 5.5% after it held rates steady in August .
The GST rationalisation, income tax relief and lower rates could set the consumption theme up for a long-awaited comeback, Ikigai’s Pankaj Tibrewal has said.
The use of TREPS is becoming increasingly widespread as a means to hold cash positions. As per PrimeMFDatabase, 89.71 percent of equity schemes had exposure to cash equivalents like TREPS, CBLO (Collateralized Borrowing and Lending Obligation), or reverse repos in July. In just two months, 18 additional equity schemes have begun using these instruments to manage cash positions.
Government bond yields have been on the rise since the RBI’s status quo in the August monetary policy. Though the decision was in line with the market expectation, few participants expected a surprise rate cut.
The MPC will likely moderate its baseline forecast for GDP below the extant 6.5 percent, further supporting the case for a rate cut
The RBI will likely hold rates steady on August 6 and also in October, waiting for a clear read on the monsoon, a critical input for food inflation, but come December, the pieces could finally fall into place for a rate cut
Around 27 percent of the total funds raised in Q1FY26 were mobilised by just five large corporates: National Bank for Agriculture and Rural Development, Indian Oil Corporation, Small Industries Development Bank of India, Reliance Jio Infocomm, and Reliance Retail Ventures.
RBI's mixed signals following June's monetary policy review have left bond markets confused about India's interest rate trajectory, creating unexpected opportunities for savvy investors
Money market experts said that short-term rates may come down further after the phased cash reserve ratio cut from September.
The change from ‘accommodative’ to ‘neutral’ in the June 6 policy does not 'preclude further rate cuts. Absolutely not,' said RBI rate setting panel's external member said
During Q1FY26, RBI has reduced repo rate by 75 bps to support growth. In response to this rate cut, only 20 bps yields have reduced on the government securities.
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.
All but two of 51 economists in a Reuters poll taken after the June 6 decision expected the RBI to hold the repo rate at 5.5% at its next meeting in August
The Nifty PSU Bank index it the top sectoral gainer, dodging an overall muted market sentiment to extend gains for a second consecutive session, outperforming the broader Nifty Bank index.
The CPI print sets the stage for another rate cut by the RBI in its June policy of 25 bps, they said.
Malhotra also said the recent tariffs announced by US President Donald Trump has dampened the global sentiment and fueled uncertainty
There is speculation among market participants that the RBI will cut repo rate by 25 bps in April policy, and b25 bps in June. But experts said that OIS rates are suggesting more than a 25 bps rate cut in April.
A Moneycontrol poll of 21 economists, treasury heads, and fund managers showed that the RBI’s Monetary Policy Committee, during its first meeting in the financial year 2025-26, which began today, is expected to cut the repo rate by 25 basis points on April 9.
Banks, burdened with high deposit cost, have been unable to pass on rate cuts effectively due to tighter liquidity in the banking system, hence necessitating a cut.
Retail inflation eased to a seven-month low of 3.61 percent in February, as food inflation eased further, according to data released by the government on March 12
CRSIL ratings, in their report, expect that the central bank will 50-75 bpos in the financial year 2025-26, to support consumption and lower borrowing costs
Crisil's Chief Economist has projected that the CPI inflation may decline to 4.4 percent in FY26, supported by a healthy kharif and rabi crop. He anticipates another 75–100 basis points in rate cuts by RBI next fiscal.
RBI MPC's rate cut failed to excite the benchmark indices that traded flat, with the Nifty and Sensex trimming morning gains.
Monetary and fiscal policies should not work at cross purposes but rather complement each other to ensure balanced economic growth, Tuhin Kanta Pandey told Moneycontrol in an interview.