The move comes as an effort by the central bank to reduce cash reserve ratio and review bank liquidity. India's banking system liquidity surplus stood at Rs 2.44 tn as of 23 June.
RBI retained its projection of 6.5% growth, but highlighted global uncertainty, particularly due to renewed tariffs from July & volatility in commodity prices as risks to growth outlook.
This comes amid looming uncertainties as Trump’s tariff regime kicks in. RBI also revised its growth estimates for FY25-26, lowering GDP estimates by 20 points to 6.5% from 6.7%.
RBI has kept repo rate high & unchanged at 6.5% since February 2023 in an attempt to slow credit growth & thereby lower inflation. This has not come to pass, ThePrint’s analysis shows.
Shaktikanta Das said the central bank was not ‘behind the curve’ in terms of monetary policy & would base its decisions on incoming data and the outlook on inflation.
Four out of six members vote to maintain repo rate while two vote for 25 basis point reduction. RBI governor cites rise in headline inflation in June, primarily driven by food component.
Repo rate was raised by 250 basis points between May 2022 and February 2023. Robust growth to provide space for monetary policy to remain focused on bringing inflation down to 4% target.
Governor Shaktikanta Das also provided a positive outlook for manufacturing and services sector, while adding that agricultural sector was expected to remain resilient.
RBI’s monetary policy committee voted to keep interest rates unchanged at 6.5%, says RBI Governor Shaktikanta Das. Adds, inflation is set to ease further to 5.2% by end of financial year.
Delhi must see opportunity in the new envoy, to be prepared for hurdles, yet be forward-looking and free of preconceived notions that could spoil any chances of a breakthrough.
New bill aims to fix key issues with IBC 2016, including delays & patchy implementation, and protect creditors, with window for genuine promoters to retain control of their companies.
At Ran Samvad seminar, defence minister spoke about reasons behind success of Op Sindoor, explained how warfare changed in real time & called for upgradation of tech & cyber infra.
Putin sees this as a victory. Europeans have decided to deal with Trump on his terms for the sake of the larger Western alliance. We look at the lessons for us in India.
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