RBI MPC Meeting Highlights: MPC surprises with 50 bps repo rate cut, 100 bps CRR cut; shifts gear to neutral

RBI MPC Meeting LIVE: RBL Bank, Aditya Birla Capital, SBI Cards rally up to 5% as RBI sees easing stress in unsecured loans

RBI MPC Meeting LIVE: Shares of RBL Bank, Aditya Birla Capital, and SBI Cards and Payments Services rallied up to 5% after RBI Governor Sanjay Malhotra, in his monetary policy speech, noted that the stress previously observed in unsecured loans and credit card portfolios has ‘abated.’ However, he cautioned that microfinance institutions (MFIs) continue to face pressure.

RBI MPC Meeting LIVE: Policy to drive credit expansion in priority sectors: Indian Overseas Bank CEO

RBI MPC Meeting LIVE: This overall policy reflects a well calibrated and thoughtful approach with the GDP projected at 6.5% in FY26 and a steady quarterly trend. The pickup in non-gold imports and 14% increase in gross FDI also indicate robust domestic demand and global investor confidence in India’s structural strength. We believe this policy decision is expected to provide the necessary drive for credit expansion in priority sectors which will fasten the inclusion of economic growth, said Ajay Kumar Srivastava, MD & CEO, Indian Overseas Bank.

RBI MPC Meeting LIVE: Policy likely to support domestic consumption, stimulate credit demand: George Muthoot

RBI MPC Meeting LIVE:For NBFCs, this is an encouraging move as it creates a favourable environment by lowering borrowing costs and extending affordable credit to underserved communities. The move, coupled with a lowered inflation outlook, is likely to support domestic consumption and stimulate credit demand, in the coming quarters. Overall, we view this as a timely and positive intervention that can support a stronger credit cycle in FY26, said George Alexander Muthoot, MD, Muthoot Finance.

RBI MPC Meeting LIVE: IndusInd Bank share price jumps 5% after RBI Governor’s statement

RBI MPC Meeting LIVE: IndusInd Bank share price jumped nearly 5% after the RBI Governor Sanjay Malhotra said that the issue in the private lender should settle down soon. IndusInd Bank shares gained as much as 4.81% to ₹841.80 apiece on the BSE. ”IndusInd Bank has taken enough steps to improve accounting practices. IndusInd Bank MD & CEO has resigned, taking moral responsibility. The issue in the bank should settle down very soon,” RBI Governor Malhotra said.

RBI MPC Meeting LIVE: RBI concerned about cryptocurrencies: Governor

RBI MPC Meeting LIVE: RBI is concerned about cryptocurrencies as it can hamper financial stability and monetary policy, said Governor Sanjay Malhotra

RBI MPC Meeting LIVE: We have enough tools to manage liquidity: RBI Governor

RBI MPC Meeting LIVE: CRR is not the only tool. We have enough tools to manage liquidity, said RBI Governor.

RBI MPC Meeting LIVE: India-Pakistan conflict to not have any major economic impact: RBI Governor

RBI MPC Meeting LIVE: India-Pakistan conflict will not have any major impact on the economy, said RBI Governor. He added that the latest rise in Covid cases are not a matter of concern.

RBI MPC Meeting LIVE: RBI will not be failing in its duty if action has to be taken: RBI Governor on IndusInd Bank

RBI MPC Meeting LIVE: IndusInd Bank has taken enough steps to improve accounting practices. IndusInd Bank MD & CEO has resigned, taking moral responsibility. The issue in the bank should settle down very soon. There is no systemic impact arising out of the issue. RBI will not be failing in its duty if action has to be taken: RBI Governor Sanjay Malhotra on IndusInd Bank crisis.

RBI MPC Meeting LIVE: No change in near future in norms on FII investment in banks

RBI MPC Meeting LIVE: There will be no change in FDI limits, and no change in foreign holdings cap in banks in near term, says RBI Governor.

RBI MPC Meeting LIVE: LTV for gold loans below ₹2.5 lakh to be revised to 85% from 75%

RBI MPC Meeting LIVE: LTV for gold loans below ₹2.5 lakh to be revised to 85% from 75%, announced RBI Governor.

RBI MPC Meeting LIVE: Final gold loan regulations by today, or latest Monday: RBI Guv

RBI MPC Meeting LIVE: There is nothing new in the draft gold loan regulations. We just consolidated old regulations and reiterated them. We have seen that some regulated entities there were not following the norms because there was no clarity on it. Hence, we have consolidated them. The final guidelines on gold loans will be issued by today or latest by Monday or Tuesday. I hope the final gold loan norms  will help us regulate the sector well, said RBI Governor.

RBI MPC Meeting LIVE: Final regulations on gold loans to be issued as soon as today or by next week, said RBI Governor

RBI MPC Meeting LIVE: Final regulations on gold loans to be issued as soon as today or latest by early next week, said RBI Governor.

RBI MPC Meeting LIVE: Front loaded rate cuts to allow faster policy transmission: RBI Governor

RBI MPC Meeting LIVE: Front loaded rate cuts to allow faster policy transmission. Expect positive impact of policy on growth, said RBI Governor.

RBI MPC Meeting LIVE: Policy stance of Neutral means next move will be based on upcoming data: RBI Guv

RBI MPC Meeting LIVE: Policy stance of Neutral means next move will be based on upcoming data, said RBI Governor

RBI MPC Meeting LIVE: Transmission of repo rate cut has happened much faster: RBI Guv

RBI MPC Meeting LIVE: The transmission of repo rate cut has happened much faster compared to past trends. In the money market side, transmission has reduced by 50 bps and in the credit market it has been reduced by around 40 bps, RBI Governor Sanjay Malhotra said.

RBI MPC Meeting LIVE: All six MPC members decided to change the stance: RBI Guv

RBI MPC Meeting LIVE: There was no voting per se on the stance but the views of all MPC members were taken into account. All six MPC members decided to change the stance to neutral, says Governor Sanjay Malhotra.

RBI MPC Meeting LIVE: Safe to assume we have won the war against inflation: RBI Governor Malhotra

RBI MPC Meeting LIVE: It is safe to assume we have won the war against inflation. GDP growth rate at 6.5% is good , but there is a scope for improvement, said RBI Governor Sanjay Malhotra.

RBI MPC Meeting LIVE: MPC has very limited space to boost growth: RBI Governor

RBI MPC Meeting LIVE: MPC has a very limited space to boost growth which is why we changed the policy stance to neutral, said RBI Governor Sanjay Malhotra.

RBI MPC Meeting LIVE: Liquidity abundant, no thought on targeted level of call rate: RBI Governor

RBI MPC Meeting LIVE: Liquidity is abundant. We have not given thought to any targeted level of call rate, said RBI Governor Sanjay Malhotra.

RBI MPC Meeting LIVE: A++ policy, timely, bold and far sighted: Ajay Bagga

RBI MPC Meeting LIVE: RBI unleashed a landmark policy, more in the nature of the great policies of Bimal Jalan or Y V Reddy than today's data driven, meeting to meeting, midget policies. The 50 basis points rate cut will unleash a massive monetary stimulus in the economy and foster growth and aggregate demand both. The CRR cut by 1% is a most unexpected fillip to banks, releasing huge liquidity and shoring up their margins and bottomlines. An A++ policy, timely, bold and far sighted, said Ajay Bagga.

RBI MPC Meeting LIVE: Rate cut may shift interest towards mutual funds, debt instruments: Swapnil Aggarwal of VSRK Capital

RBI MPC Meeting LIVE: The reduction in interest rate will impact returns on fixed deposits which were attractive during the high rate period. With a decline in FD rates, we expect an increased shift in investors to mutual funds, debt instruments and other market-linked products. This may result in renewed investments into the capital markets which would improve liquidity and growth. In general, these changes have the potential to positively influence the credit, consumption, and investment cycles in the economy, said Swapnil Aggarwal, Director, VSRK Capital.

RBI MPC Meeting LIVE: RBI trying to stay ahead of the curve: Tradejini COO

RBI MPC Meeting LIVE: The message is clear. The RBI is trying to stay ahead of the curve, especially with global demand weakening and uncertainties still hanging over the economy. At the same time, the RBI is also signalling that its room to do more is limited and that came through with the shift in stance to ‘neutral’. So while this cut is bold, it may also be the last in this cycle, unless growth slows even more. From here, the focus will likely shift to how long the RBI keeps rates at these levels, and what triggers the next move, said Trivesh, COO Tradejini.

RBI MPC Meeting LIVE: RBI policy may raise some concerns about narrowing gap between US and Indian yields: Debopam Chaudhari of Piramal Group

RBI MPC Meeting LIVE: This landmark policy marks a decisive push to revive domestic growth and could be remembered as a historic pivot in the RBI’s journey—one that catalyzed India’s next phase of economic expansion. This may raise some concerns about the narrowing gap between US and Indian yields. However, India’s strong growth prospects and political stability will remain compelling factors for foreign capital seeking diversification within emerging markets, said Debopam Chaudhari, Chief Economist, Piramal Group.

RBI MPC Meeting LIVE: Rate cut to bolster credit lending, accelerate buying in realty sector: Niranjan Hiranandani

RBI MPC Meeting LIVE: For the real estate sector, this rate reduction is set to bolster credit lending, accelerate buying velocity, and enhance development momentum. The resulting decline in home loan interest rates will directly benefit homebuyers by improving affordability and cushioning their financial commitments. Lower mortgage rates make home ownership more attainable, driving greater demand and fostering stronger sales indices. Additionally, this move could spur refinancing activity and strengthen investment interest in branded properties known for their attractive returns, particularly among Grade A developers, said Niranjan Hiranandani, Chairman, NAREDCO & Hiranandani Group.

RBI MPC Meeting LIVE: Will ensure to pass on rate transmission immediately: Indian Bank CEO Binod Kumar

RBI MPC Meeting LIVE: The RBI’s decision to cut the repo rate by 50 basis points to 5.50% while changing its stance to neutral will boost credit demand in sectors like Retail, Agriculture and MSME. It will also encourage private capex. CRR cut will provide liquidity at the hands of banks. RBI is taking very proactive steps keeping in view looming headwinds on credit growth. We will ensure to pass on rate transmission immediately to support entrepreneurs and keep the economy moving forward, said Binod Kumar MD & CEO of Indian Bank.

RBI MPC Meeting LIVE: RBI policy assertively growth-targeted: Arsh Mogre of PL Capital

RBI MPC Meeting LIVE: RBI policy assertively growth-targeted: Arsh Mogre of PL Capital

RBI MPC Meeting LIVE: In effect, the June MPC outcome is not merely accommodative—it is assertively growth-targeted, without compromising on credibility. The CRR cut in particular offsets short-term pressures on bank margins from lower rates, ensuring that monetary easing is not liquidity-starved. Contrary to fears that the stance shift to ‘neutral’ implies an end to easing, it should be interpreted as a calibration move to retain future optionality and prevent speculative froth. If inflation remains below 4% through H2FY26—and transmission visibly improves—there remains room for another 25 bps cut before year-end, said Arsh Mogre, Economist, PL Capital.

RBI MPC Meeting LIVE: It is no longer about growth-inflation – it is about external versus internal: Anitha Rangan of Equirus Securities

RBI MPC Meeting LIVE: A brake on further rate cuts suggests that RBI is finally concerned about FX but to keep the domestic growth engine running, continuing to give liquidity boost. Inflation has been revised downward to 3.7% from 4% while growth for FY26 is unchanged at 6.5%. However it appears that it is no longer about growth-inflation – it is about external versus internal. Front loading is necessary for growth but externalities are keeping further cuts away. Do what it takes now – risks will be managed down the road, said Anitha Rangan, Economist, Equirus Securities.

RBI MPC Meeting LIVE: Big rate cut will impact the margins of the banks: VK Vijayakumar of Geojit

RBI MPC Meeting LIVE: The higher-than-expected 50 bps rate cut decision by the MPC, though positive for growth, is slightly negative from the market perspective for the near-term. This big rate cut is, as the RBI Governor remarked, front-loading of the rate cut. The change in monetary stance from accommodative to neutral also indicates that more rate cuts are unlikely unless the situation warrants. This big rate cut will impact the margins of the banks and, therefore, bank stocks will be under pressure in the near-term. However, the credit growth that this rate cut will hopefully stimulate will compensate for the dip in margins, said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments.

RBI MPC Meeting LIVE: Fixed deposit rates to come down sharply, look at 2-3 year corporate bonds for portfolio: Vishal Goenka of IndiaBonds.com

RBI MPC Meeting LIVE: Front loading of rate cuts by RBI addresses the need to spur growth as short end rates come down aggressively which in turn will assist corporate borrowing through capital markets for the short end. However, we see a large curve steepening as long end rates remain relatively unchanged with RBI stance changing to neutral from accommodative. This implies that further room to cut rates remain limited and data dependent. A balanced policy encouraging growth, said Vishal Goenka, Co-Founder of IndiaBonds.com.

Fixed deposit rates to come down sharply as banks transmit this rate cut. Investors should look at 2-3 year corporate bonds for their portfolio as they continue to offer good spreads over government and FD rates and interest rates will come down more gradually for corporate bonds, he added.

RBI MPC Meeting LIVE: Ball is in banks’ court to transmit easier financial conditions faster: Madhavi Arora

RBI MPC Meeting LIVE: Madhavi Arora, Chief Economist, Emkay Global Financial Services said that the RBI appears to have front-loaded all policy actions, be it higher-than-expected rate cuts or infusing durable albeit staggered liquidity via lower CRRs.

“All of that now implies that the ball is in the banks’ court to transmit easier financial conditions faster,” said Arora.

RBI MPC Meeting LIVE: Inflation expectations are showing a moderating trend: RBI Governor

RBI MPC Meeting LIVE: The outlook for inflation points towards benign prices across major constituents. Inflation expectations are showing a moderating trend, more so for the rural households. Most projections point towards continued moderation in the prices of key commodities, including crude oil. Notwithstanding these favourable prognoses, we need to remain watchful of weather-related uncertainties and still evolving tariff related concerns with their attendant impact on global commodity prices, said RBI Governor.

RBI MPC Meeting LIVE: Spillovers from protracted geopolitical tensions to pose risk to growth: RBI Governor

RBI MPC Meeting LIVE: The healthy balance sheets of banks and corporates; government’s continued thrust on capex; elevated capacity utilisation; improving business optimism and easing of financial conditions should help further revive investment activity, says RBI Governor Malhotra.

Spillovers emanating from protracted geopolitical tensions, and global trade and weather-related uncertainties pose downside risks to growth, he added.

RBI MPC Meeting LIVE: Sensex, Nifty 50, Bank Nifty rally after RBI policy

RBI MPC Meeting LIVE: The Indian stock market rebounded from early losses to trade higher after the announcement of RBI policy. The Sensex was trading 530.93 points, or 0.65%, higher at 81,972.97, while the Nifty 50 was up 168.95 points, or 0.68%, at 24,919.85. Bank Nifty index also jumped on announcement of CRR cur of 100 bps. Bank Nifty rallied 684.60 points, or 1.23%, to 56,447.50.

RBI MPC Meeting LIVE: Stress in unsecured loans and credit card portfolios has abated: RBI Governor

RBI MPC Meeting LIVE: Stress in unsecured loans and credit card portfolios has abated, says RBI Governor Malhotra.

RBI MPC Meeting LIVE: Forex reserves at $691.5 billion, sufficient to fund over 11 months of imports: RBI Governor

RBI MPC Meeting LIVE: Forex reserves stand at $691.5 billion as of May 30, sufficient to fund more than 11 months of imports and 96% of external debt. Net services, remittances are likely to remain in surplus, says RBI Governor Malhotra.

RBI MPC Meeting LIVE: Core inflation remains largely stable: RBI Governor

RBI MPC Meeting LIVE: Core inflation remains largely stable, except benign prices for major items going forward, says RBI Governor Malhotra.

RBI MPC Meeting LIVE: CRR cut to release ₹2.5 lakh crore of liquidity

RBI MPC Meeting LIVE: RBI to cut CRR in four tranches of 25 bps each starting from September 6, October 4, November 1 and November 29 this year. CRR cut to release primary liquidity of ₹2.5 lakh crore in the banking system, says RBI Governor Sanjay Malhotra

RBI MPC Meeting LIVE: RBI cuts CRR by 100 bps to 3%

RBI MPC Meeting LIVE: RBI Governor  Sanjay Malhotra also announced that the MPC decided to cut the Cash Reserve Ratio (CRR) by 100 basis points (bps) to 3% from 4% earlier. 

RBI MPC Meeting LIVE: FY26 CPI inflation estimates cut to 3.7% from 4%

RBI MPC Meeting LIVE: RBI cuts FY26 CPI inflation estimates to 3.7% from 4% earlier. Here are quarterly estimates:

> Q1FY26: Cut to 2.9% from 3.6%

> Q2FY26: Cut to 3.4% from 3.9%

> Q3FY26: Raised to 3.9% from 3.8%

> Q4FY26: Maintained at 4.4%

RBI MPC Meeting LIVE: RBI maintains FY26 GDP forecast at 6.5%

RBI MPC Meeting LIVE: RBI maintains GDP forecast for FY26 at 6.5%. Here’s quarterly estimates:

FY26 at 6.5%

> Q1FY26 at 6.5%

> Q2FY26 at 6.7%

> Q3FY26 at 6.6%

> Q4FY26 at 6.3%

RBI MPC Meeting LIVE: FY26 inflation now seen at 3.7% as against 4%

RBI MPC Meeting LIVE: FY26 inflation now seen at 3.7% as against 4% earlier, says RBI Governor

RBI MPC Meeting LIVE: MPC changes stance to ‘Neutral’

RBI MPC Meeting LIVE:  The RBI Governor Sanjay Malhotra-led Monetary Policy Committee (MPC) also decided to change the policy stance to ‘Neutral’ from ‘Accommodative’. 

RBI MPC Meeting LIVE: RBI cuts repo rate by 50 bps to 5.50%

RBI MPC Meeting LIVE: The Reserve Bank of India (RBI) decided to cut the repo rate by 50 basis points (bps) to 5.50% from 6.00% earlier. This is the central bank’s third consecutive repo rate cut.

RBI MPC Meeting LIVE: Global backdrop remains fragile: RBI Governor Malhotra

RBI MPC Meeting LIVE: Last mile of inflation is turning out little more protracted. Global backdrop remains fragile, says RBI Governor Sanjay Malhotra.

RBI MPC Meeting LIVE: RBI Governor Sanjay Malhotra begins his policy speech

RBI MPC Meeting LIVE: RBI Governor Sanjay Malhotra begins his monetary policy speech

RBI MPC Meeting LIVE: Sensex, Nifty 50 trade lower, Bank Nifty down 0.2% ahead of RBI policy announcement

RBI MPC Meeting LIVE: The losses in the Indian stock market intensified ahead of the RBI monetary policy announcement. The Sensex was trading 255.97 points, or 0.31%, lower at 81,186.07, while the Nifty 50 was down 58.15 points, or 0.23%, at 24,692.80. Bank Nifty index dropped 131.75 points, or 0.24%, to 55,644.30.