RBI monetary policy
)
The marginal cost of funds-based lending rate (MCLR) is the minimum interest rate that a bank can charge on a loan.
)
The bank said the decline in oil prices is providing "disinflationary relief" across much of Asia, reducing the urgency for policymakers to keep interest rates elevated.
)
The benchmark indices closed lower, with the Nifty declining 49.85 points, or 0.21 per cent, to settle at 23,366.70. The Sensex also slipped 116.67 points, or 0.16 per cent, to close at 74,243.34.
)
RBI decided to maintain status quo on interest rates amid volatile global conditions, driven by ongoing tensions in West Asia.
)
Speaking at the Citi India Conference in Mumbai, Setty said a rate pause at this juncture would help stabilise conditions, while noting that inflation dynamics remain an important factor for policymakers.
)
The report from CareEdge Ratings said inflationary concerns have intensified due to projected below‑normal monsoon and recent retail fuel price hikes.
)
In uncertain times, a good central bank should be cautious about false precision, forceful against high-cost tail risks, systematic enough to preserve credibility, flexible enough to adapt, and transparent enough that uncertainty about the economy does not become uncertainty about the central bank itself.
)
RBI has kept the repo rate unchanged at 5.25 percent, continuing with a cautious wait and watch approach.
)
The report by SBI Mutual Fund highlighted that oil prices are currently about 50 percent higher than the RBI’s benchmark assumption of USD 70 per barrel. Despite this sharp rise, the threshold for monetary tightening remains high, suggesting the central bank may continue its cautious stance.
)
The meeting -- scheduled from April 6 to April 8 -- comes at a time when rising crude oil prices and global geopolitical tensions have clouded the inflation outlook.
)
The three-day policy meeting is scheduled from April 6 to April 8 -- the first since the ongoing energy shock triggered by the West Asia conflict pushed Brent crude to average around $100 per barrel in March.
)
If inflation breaches the upper tolerance band of 6 per cent, the bank said there could be a rate hike towards the end of the year.
)
Economists believe RBI Governor Sanjay Malhotra-led MPC is likely to pause any further policy rate cut. The Central Bank is rather set to undertake direct measures to tackle liquidity, bond stability and currency-related risks.
)
The Central Bank has already lowered the repo rate by 125 basis points since February 2025 to 5.25 per cent.
)
This is unprecedented as this is the largest OMO in the history of monetary management.
)
The RBI monetary policy committee unanimously voted to cut the repo rate by 25 bps amid uncertainties in a tumultuous global order. The RBI panel also maintained its neutral stance. With GDP growth above 8.2 per cent in the July-September 2025 quarter and ultra-low inflation of 0.25 per cent in October, the rate cut is "exceptional", the SBI Research said in the report.
)
The three-day MPC meeting comes at a time when inflation is at an all-time low and GDP growth on a high trajectory path.
)
The report said the broader policy stance is likely to stay prudent, with the central bank poised to become data-dependent once this step is taken.
The report said the broader policy stance is likely to stay prudent, with the central bank poised to become data-dependent once this step is taken.
)
The declining trend in food prices continued in October as food inflation fell deeper in the negative zone at (-) 5.02 per cent from (-) 2.28 per cent in September. Food inflation has now continued to stay negative for the fifth consecutive month, bringing welcome relief to household budgets.
)
Earlier in 2025, the RBI had slashed the repo rate by a total of 100 basis points, but chose to hold it steady in its August meeting.
)
The October MPC meeting was held from September 29 to October 1, where the six-member committee discussed key issues like interest rates, inflation, and economic growth. This was the fourth meeting of FY26, with two more scheduled for December 3–5, 2025, and February 4–6, 2026.
Trending
- News
- Photos
- Videos
)