INFLATION EXPECTATIONS

India’s urban buyers show stable confidence, expect brighter outlook: RBI survey
The RBI's May 2025 survey reveals stable urban consumer sentiment regarding the current economy, with a slight dip in the Consumer Confidence Index to 95.4. However, future expectations have brightened, as the Future Expectations Index rose to 123.4. Concerns about inflation are easing, and households anticipate moderating prices.

Households feel inflation is easing in short and medium term: RBI Survey
The Reserve Bank of India reports a slight dip in how Indian households view current inflation. A recent survey shows people feel price pressures are easing. Expectations for the near future have also softened. The survey, conducted across 19 cities, reveals varied perceptions based on demographics and location. Food prices are still a major concern.

RBI surprise to boost earnings, support India’s market outperformance: Mayuresh Joshi
The market reacted positively to the rate cut. Reserve Bank of India changed policy stance to neutral. This move ensures financial system transmission. Corporate earnings may grow 12.5% to 14.5%. Input cost inflation is expected to go lower. Tax cuts will increase discretionary spending. Rural consumption may strongly comeback. Banks and NBFCs will benefit.

Rate-sensitive sectors like banking, NBFCs, real estate and automobile to gain amid easing rates: Report
Sectors like banking, NBFCs, real estate, and automobiles are poised to benefit from India's easing interest rate cycle, as lower borrowing costs boost credit flow, demand, and fixed-income returns amid falling yields and rising liquidity, says Nexedge Research.

RBI’s unexpectedly deep rate cut and the road ahead
The RBI’s sharper-than-expected 50 bps rate cut and 100 bps CRR reduction aim to boost credit growth and economic activity amid subdued inflation. With a shift to a neutral stance, the central bank signals flexibility to either pause or ease further depending on future data, offering tactical opportunities across rate-sensitive sectors.

Fed's Alberto Musalem puts '50-50' odds on tariffs sparking sustained US inflation: Report
St. Louis Fed President Alberto Musalem assesses a 50-50 chance of Trump's trade war triggering sustained inflation, creating uncertainty for U.S. policymakers through the summer. He suggests a potential scenario where trade and fiscal policy clarity emerges in July, potentially paving the way for Fed rate cuts in September.
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RBI throws a surprise party with big rate cut and Rs 2.5 lakh crore boost
The Reserve Bank of India surprised investors with a significant policy rate cut. This action aims to stimulate economic growth amid receding inflation concerns. The RBI also released substantial liquidity to encourage lending. Governor Sanjay Malhotra emphasized the need for proactive measures. The rate cut is expected to lower borrowing costs for home loans and small businesses.
Trump wants but Putin gets it! Russian central bank cuts key interest rate by a full percentage point
Russia's economic growth rate fell to 1.5 per cent year-on-year in the first four months of 2025, compared to 4.3 per cent last year.
RBI cuts repo rate by 50bps; here's what key economists say
The Reserve Bank of India (RBI) surprised markets by reducing the repo rate by 50 basis points to 5.5% and cutting the Cash Reserve Ratio (CRR) by 100 basis points. This move aims to boost economic growth amid subdued momentum and easing inflation.
RBI lowers inflation forecast, but retains growth forecast
The Reserve Bank of India has revised its FY'26 consumer inflation target downwards to 3.7%, from the earlier 4% projection made in April, while maintaining a growth forecast of 6.5%. This revision is influenced by declining CPI inflation, particularly in food, and expectations of a favorable monsoon season boosting crop production.
RBI’s 50 bps rate cut sparks short-term bond rally, long-term yields stay subdued. What's ahead?
India’s short-term government bonds rallied after the RBI’s surprise 50 bps rate cut, while long-term yields remained largely stable. The central bank’s dovish tilt and liquidity infusion via a cumulative 100 bps CRR cut added to the positive momentum. Experts expect monetary transmission to improve, with shorter-end yields benefiting the most amid a data-dependent policy outlook.
RBI MPC opts for a 'jumbo' rate cut to bring repo rate down to 5.5%, switches to neutral gear
RBI MPC 2025 Repo Rate Change: The Reserve Bank of India's Monetary Policy Committee (MPC) reduced the repo rate for the third consecutive time this year, led by Governor Sanjay Malhotra. The decision, made on May 5, 2025, follows previous 25-bps cuts in February and April, driven by a decline in retail inflation to 3.16% in April, prompting banks to lower lending rates.
RBI takes up axe in hand for frontloading rate cuts to push 3D India
The Reserve Bank of India cut the repo rate by 50 basis points to 5.50%, marking its third consecutive reduction and totaling 100 basis points of cuts in 2025. It also slashed the Cash Reserve Ratio (CRR) by 100 basis points to 3%, injecting additional liquidity into the banking system. The RBI shifted its monetary policy stance from "accommodative" to "neutral", citing muted inflation and the need to support economic growth.
RBI’s surprise 50 bps rate cut seen reviving real estate demand. Here's what it means for property investors
In a move expected to unlock a fresh wave of housing demand, the Reserve Bank of India on Friday slashed the repo rate by 50 basis points to 5.5%, marking the third straight rate cut under Governor Sanjay Malhotra.
RBI Inflation 2025-26: FY26 inflation forecast revised downwards to 3.7%
The latest quarter-wise estimates are: 2.9% in Q1, 3.4% in Q2, 3.5% in Q3, and 4.4% in Q4. The central bank maintained that risks to inflation outlook are “evenly balanced.”
RBI MPC Meeting 2025-26 Key Takeaways: Check what Sanjay Malhotra announced today
The Reserve Bank of India (RBI) has reduced its policy rate by 50 basis points, the third cut since February 2025, bringing the repo rate to 5.5%. Citing global economic uncertainties and below-target inflation, the MPC aims to boost domestic growth. The RBI also lowered the Cash Reserve Ratio (CRR) to 3% and projects a GDP growth of 6.5%
RBI MPC at a glance: Your one-stop guide for all key decisions
The RBI's MPC, led by Governor Sanjay Malhotra, cut the repo rate by 50 bps to 5.50% to support growth, projecting a 6.5% GDP increase for 2025-26. With inflation at a near six-year low of 3.2% in April 2025, the MPC forecasts CPI inflation at 3.7% for the fiscal year.
RBI MPC highlights: From 'jumbo' repo rate cut to CRR cut by 100 bps, here’s everything Sanjay Malhotra’s team rolled out
The Reserve Bank of India's MPC, led by Governor Sanjay Malhotra, reduced the repo rate by 50 bps to 5.5% due to falling inflation and moderate growth. The committee projects a 6.5% GDP growth for 2025-26 and revised the inflation forecast to 3.7%. The MPC shifted its policy stance to neutral, with five members favoring the rate cut.
Economists push for 50 bps cut to boost India's economic growth
With future price pressures appearing benign and credit demand subdued, some economists are advocating for an outsized 50-basis-point rate cut by the Monetary Policy Committee (MPC). This move aims to revive the credit cycle and boost economic momentum, potentially counterbalancing uncertainty.
Fed's Kugler backs holding rates if inflation risks persist
Federal Reserve officials are expressing concerns about the potential inflationary impact of tariffs. Governor Kugler anticipates larger price increases due to President Trump's tariffs in 2025, supporting steady interest rates if inflation risks persist. Presidents Schmid and Harker also highlighted the unsettling economic outlook and potential for tariff-driven price pressures.
Will RBI opt for a jumbo rate cut to revive the economy?
Economists are increasingly advocating for a larger 50-basis-point interest rate cut by the Monetary Policy Committee, citing benign future price pressures and subdued credit demand. Proponents believe this move would revive the credit cycle and provide a stronger boost to economic growth, counterbalancing uncertainty. Inflation is expected to remain within the mandated legal band, further justifying the substantial rate reduction.
Why RBI will hit a hattrick of 25 bps rate cut tomorrow
Despite global economic uncertainties, India's economy shows resilience with a 7.4% growth in Q4 FY25. The RBI, supported by benign inflation and moderate growth, is expected to cut the repo rate by 25 bps to 5.75% in June. This move aims to boost economic activity, encourage borrowing and investment, and foster job creation, marking the third consecutive rate cut.
Retail inflation likely to ease to 6-year low of 3% in May on cooling food prices: UBI
India's retail inflation is expected to ease to 3.0 percent in May. This will be the lowest in six years. The Union Bank of India report indicates moderation in cereal and pulse prices. Core inflation remained stable. The Reserve Bank of India's manageable range is between 2-6 percent.
Inflation risks tilt to downside, opening space for further monetary easing: Upasana Chachra
Morgan Stanley's Upasana Chachra indicates a benign inflation outlook. Numbers are expected around 3-3.5% for the next few months, below 4% in calendar year 2025. Good monsoons are improving crop production and food inflation outlook. The Reserve Bank of India is expected to continue its easing path with further rate cuts. India's growth is forecasted at 6.
Reserve Bank-led MPC may deliver third straight rate cut as inflation undershoots
Reserve Bank of India is likely to cut rates for the third time. This is to boost economic growth, given muted inflation. Most economists expect a 25-basis point cut in the repo rate. Retail inflation has slowed down. India's GDP grew faster than expected in the March quarter. The central bank may widen the policy rate corridor.
RBI MPC meeting starts: Malhotra & co seen on the edge of a bold decision
The Reserve Bank of India's MPC is meeting to decide on interest rates amidst easing inflation, which fell to 3.16% in April. Economists are divided, with some advocating for a 50 bps cut to boost growth, while others prefer a cautious 25 bps reduction due to external risks and monsoon uncertainties.
RBI MPC meeting: Which way is repo rate likely to move this time, and by how much? Economists decode the signs
As the Reserve Bank of India's Monetary Policy Committee (MPC) begins its two-day meeting in Mumbai to deliberate on the key policy rates, economists are divided over the quantum of the rate cut that the central bank should undertake in its June 6 announcement.
Rate cut expected, RBI's views in focus with economy near a sizzle
Economists anticipate Reserve Bank of India will reduce interest rates this week. This decision comes amid decreasing inflation. Experts await the central bank's insights on inflation and economic growth. These insights will help determine the duration of the easing cycle. The goal is to stimulate demand in India's growing economy. The focus remains on consumption, investment, and global uncertainties.
US consumer spending slows in April; inflation rises moderately
U.S. consumer spending saw a slight increase of 0.2% in April, following a more substantial 0.7% rise in March, as pre-emptive buying slowed down. This increase was influenced by President Trump's import tariffs. The Federal Reserve expressed concerns that these tariffs could hinder economic growth and increase inflation.
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