Repo rate steady at 5.25%; RBI flags Hormuz disruptions, energy risks
India’s central bank has kept borrowing costs steady while signalling caution on global risks, even as domestic demand and services activity continue to support economic momentum.
India’s central bank has kept borrowing costs steady while signalling caution on global risks, even as domestic demand and services activity continue to support economic momentum.
Consequently, the standing deposit facility (SDF) rate remains at 5%, and the marginal standing facility (MSF) rate and the Bank Rate remain at 5.50%.
The Reserve Bank of India (RBI) released its bi-monthly monetary policy here on Friday after the Monetary Policy Committee (MPC)…
The RBI is likely to lower the repo rate by 25 basis points attributed to persistent downside surprises in headline Consumer Price Index inflation in its upcoming monetary policy committee meeting, Morgan Stanley in its latest report.
The MPC has also revised the average headline inflation for this year to 2.6 per cent from the earlier projection of 3.7 per cent in June and 3.1 per cent in August.
The Reserve Bank of India (RBI) is likely to hike the policy repo rate by 40 basis points to 4.80 per cent on Wednesday and increase the inflation forecast for the current fiscal to above 6 per cent from its earlier projection of 5.7 per cent, according to market analysts and economists.
RBI Governor termed the recent inflations as "transitory" and "driven by adverse supply side factors"
The central bank has retained growth projection of 10.5 per cent for the current financial year as was estimated in its February bi-monthly policy.
The cut is expected to impact all categories of loans offered by the bank.
RBI had last revised its policy rate on May 22, in an off-policy cycle to perk up demand by cutting interest rate to a historic low.
