As per estimates by the experts, this auction will approximately inject Rs 45,000 crore liquidity to the banking system.
The local currency hit the all time low in this week and crossed 90-mark against the US dollar on persistent equity outflows and uncertainty around the India-US trade deal.
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.
The central bank revised down the CPI inflation by 60 basis points (Bps) for FY26 to 2 percent from 2.6 percent projected earlier.
The RBI will launch a special redressal drive from January 1 to address unresolved grievances under its ombudsman framework
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’s rate cut puts a floor under growth, even as a sliding rupee and global uncertainty test India’s market resilience ahead of a crucial earnings year
The local currency was trading at 89.98 against the dollar after opening at 89.85
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.
The inflation forecast for Q3 was revised to 7% from 6.4% earlier, and that for Q4 has been revised to 6.5% from 6.2%.
The MPC kept the stance unchanged at 'Neutral'; RBI also decided to conduct open market operations of Rs 1 lakh crore in December
On November 21, a Moneycontrol poll of economists, treasury heads and fund managers said that the RBI’s MPC is likely to cut repo rate by 25 basis points (bps) in the upcoming monetary policy due to the comfort provided by the lowest ever Consumer Price Index (CPI) inflation in the last two months.
A Moneycontrol poll expects the MPC to cut repo rate by 25 bps, drawing comfort from the low CPI inflation print
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.
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.
The central bank accepted the feedback on the ‘gold in raw form’ and have replaced the the term ‘Primary Gold’ as defined under extant regulations.
The central bank said in the absence of explicit legal ring-fencing between a FBB and its HO, it has been decided to retain the draft proposal and reckon such exposures only on gross basis.
The central bank has so far conducted Rs 27,280 crore worth of OMO purchases in the secondary market. According to RBI data, the central bank conducted Rs 14,810 crore OMO purchases between November 10 and November 13, and Rs 12,470 crore between November 4 and November 7.
The local currency closed at 89.9750 against the US dollar, as compared to 90.4115 at open and 90.1913 at previous close against the greenback.
The rupee, down 5.5% on year, is Asia's worst performing currency
A majority of the 44 economists surveyed by Bloomberg expect the central bank to cut its benchmark repurchase rate by a quarter point to 5.25% on Friday given inflation is well below the 4% target
On December 3, the rupee went past the 90-mark against the US dollar for the first time
According to Bloomberg data, the Indian rupee depreciated 5.06 percent between December 31, 2024, and December 3, 2025. It has become the worst-performing currency among Asian peers.
According to a source, the RBI may have intervened at the certain level of 90.16-90.17 against the US dollar in spot forex market on December 3, and again at 90.27-90.29, to curb sharp depreciation.
The Rupee opened at an all-time low on December 3 and crossed the 90-mark against the US dollar on persistent equity outflows and uncertainty around the India-US trade deal.