Monetary Policy Committee News

RBI Monetary Policy Announcement Today. MPC Meeting Comes To A Close. RBI Monetary Livestreaming Details.

Analysts believe that the GDP deflator has too much WPI inflation in it. "Such a scenario could push up real GDP growth to around 7 per cent in the June, September and December quarters of FY26, higher than our estimate of actual growth on the ground," the report said. Analysts said that the corporate results may improve in the long run.

With inflation staying within the RBI's comfort zone and the central bank signaling a pro-growth stance, FPIs are expected to increase their investments in the coming months.

This policy meeting comes at a time when inflation in the country has been steadily declining. According to the Ministry of Statistics and Programme Implementation, India's retail inflation fell to 3.16 per cent in April, compared to 3.34 per cent in March.

Chaired by RBI Governor Sanjay Malhotra, the committee’s decision will be announced on June 6. The Reserve Bank has already reduced the repo rate by 50 basis points in the previous two monetary policy reviews, lowering it to 6 per cent.

Given the prevailing benign inflation environment and the GDP growth of 6.5 per cent recorded in FY2025, the Reserve Bank is likely to proceed with a 25-bps repo rate cut this Friday (June 6).

Looking ahead, all eyes will be on the outcome of the RBI’s Monetary Policy Committee (MPC) meeting scheduled for June 6.  

The Central Bank began its three-day Monetary Policy Committee (MPC) meeting on Monday.

Foreign Institutional Investors (FIIs) turned aggressive sellers, pulling out approximately Rs 13,730 crore from the cash segment, while Domestic Institutional Investors (DIIs) provided some support with net inflows of around Rs 5,632 crore. 

Inflation Rate In India 2025: The Monetary Policy Committee (MPC), in its latest meeting, has maintained a "Neutral" stance, indicating that future rate cuts will depend on incoming macroeconomic data.  

In a marked departure from previous years, the Budget chose to stimulate consumption and savings rather than focus only on capex. However, it continued to stay focused on fiscal consolidation. 

The RBI's MPC meeting will be another major event, as it will decide key interest rates, the Cash Reserve Ratio (CRR), and the Reverse Repo Rate. 

As per the data by the official data, the retail inflation in November was at 5.48 per cent as compared to 6.21 per cent logged in October, falling in line with the Reserve Bank of India's 2-6 per cent comfort band.  

S&P Global Ratings on Tuesday projected 6.8 per cent growth for the Indian economy in FY25, followed by 6.9 per cent growth in FY26, on the back of strong urban consumption, steady service sector growth, and ongoing investment in infrastructure. 

In the last MPC meeting held in October, the central bank maintained the policy repo rate at 6.5 per cent for the 10th consecutive time.

SBI Report: According to the report, while the Indian economy faces incremental slowing of growth and geopolitical risks, a knee-jerk reaction such as an immediate rate cut might not be prudent. 

On a positive note, the report suggested that rural demand is likely to recover in the second half of the fiscal year. This optimism is based on strong agricultural performance, payouts under government schemes, and increased government spending. 

IT and banking played a pivotal role in capping losses and driving the recovery in the benchmark. Broader indices also edged higher, with gains ranging between 0.9 per cent and 1.8 per cent 

The Consumer Price Index (CPI)-based inflation rate for September reached 5.49 per cent from 3.65 per cent in August, reflecting an uptick primarily due to higher food prices. 

For the real estate market, a cut in the repo rate would result in lower interest rates on home loans, which makes EMIs more manageable for borrowers.