Decoding the RBI's October review: Rate cuts remain distant, EMIs stay where they are
Governor Sanjay Malhotra also expressed confidence in India's economy sustaining 7-8 percent growth
The proposed move, which won't change the insurance cover limit, aims to align India’s system with international practices, where deposit insurers use risk-based premiums to encourage prudent financial management
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.
RBI Monetary Policy Committee (MPC) meets to decide on India’s key interest rates. Key expectations from the meeting: Will RBI hold fire on rate cuts and opt for another pause? Outlook on inflation, growth & liquidity RBI’s stance on repo rate and borrowing costs Insights from Governor Shaktikanta Das on the Indian economy Watch the LIVE coverage of RBI’s policy announcement and expert analysis on how it impacts markets, banks, and borrowers.
The Reserve Bank of India’s Monetary Policy Committee (MPC) decision is shaping up to be a close call, with economists divided between a rate cut and a pause amid ongoing growth concerns. SBI Research, in its latest report, noted there is merit in a rate cut at the upcoming policy but stressed it would require careful communication, as the threshold for easing has become higher post-June. The report suggested a 25 basis point cut would be most appropriate. On the other hand, several bankers have ruled out an immediate cut, though they still expect one more reduction during this fiscal. If the RBI holds rates, it would mark the second consecutive pause after August. Since February, the central bank has already lowered the repo rate by 100 basis points before opting to hold in the last policy. Catch Moneycontrol’s Nandita Khemka in conversation with CNBC-TV18’s Latha Venkatesh as they decode what to expect from this week’s policy outcome.
The governor also said that the foreign exchange reserves of the country are sufficient to cover 11 months of imports
'Every bank has its own minimum balance requirement. This is not under any regulatory domain,' says Malhotra
Crude oil is a key factor in inflation, but impact depends on sourcing mix, global prices and government response, says Deputy Governor Poonam Gupta
The RBI governor hoped that India and the US will reach an “amicable solution” for both nations' trade concerns
Retail inflation eased to a 77-month low of 2.1 percent in June, down from 2.8 percent in the previous month
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.
Reserve Bank Governor Sanjay Malhotra said multilateralism has ”unfortunately” taken a back seat, and the country needs more such pacts (like the UK FTA) with countries and added that negotiations with the US are in advanced stages
The move is aimed as simplifying compliance and enhancing clarity. The review cell will revisit all regulations every five–seven years to weed out obsolete norms and examine if there’s the right balance between efficiency and financial stability
The remarks come at a time when the US administration led by President Donald Trump is moving rapidly to formalise crypto regulations
The comment comes amid interest from global lenders such as SMBC in Yes Bank and NBD in RBL Bank
The package of measures will provide some certainty in the times of uncertainty and is expected to support growth, says RBI Governor Sanjay Malhotra
Unlike his predecessor Shaktikanta Das, Malhotra has leaned decisively toward growth.
The Reserve Bank of India surprised analysts last week by cutting interest rates more than expected and announcing a cash boost for banks
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.
The forex reserves had touched an all-time high of USD 704.885 billion in end-September 2024
The comments come after a section of media claimed that India was considering easing foreign ownership rules
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.
RBI MPC Meet June 2025: Date, time, where to watch Sanjay Malhotra live and what to expect
The debt purchases are likely to increase the liquidity in the banking system, helping transmit the two rate cuts announced this year and also keep the effective cost of funds below the policy repo rate of 6.00%.