RBI cuts retail inflation projection to 3.7%, expects easing in global commodity prices
Mumbai: The RBI on Friday cut inflation projections for the current fiscal to 3.7 per cent from the earlier estimate of 4 per cent, as it expects core inflation to remain benign with the easing of international commodity prices..The sub-4 per cent average retail inflation projection is the lowest in recent years..The RBI, which cut key policy rate by 50 basis points to 5.5 per cent, said that despite these favourable prognoses, it would remain watchful of weather-related uncertainties and still evolving tariff-related concerns with their attendant impact on global commodity prices..The RBI, in its monetary policy announcement in April, had projected retail inflation to average 4 per cent in FY26..RBI MPC meeting: Repo rate cut by 50 bps, other key takeaways.In its policy on Friday, RBI Governor Sanjay Malhotra said assuming a normal monsoon, consumer price index (CPI) inflation for the financial year 2025-26 is now projected at 3.7 per cent, with June and September quarters at 2.9 per cent and 3.4 per cent, respectively. Inflation is projected at 3.9 per cent for the December quarter and 4.4 per cent for the March quarter..The retail inflation in April moderated to a near 6-year low of 3.16 per cent..The RBI said the outlook for inflation points towards benign prices across major constituents..The record wheat production and higher production of key pulses in the Rabi crop season should ensure an adequate supply of key food items. Going forward, the likely above normal monsoon along with its early onset augurs well for Kharif crop prospects..RBI cuts CRR by a steep 1%, to unlock Rs 2.5 lakh crore to bank funds by December."Reflecting this, 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," Malhotra said..The RBI has been mandated to keep inflation at 4 per cent with a band of (+/- 2 per cent). The retail inflation remained below the 4 per cent limit for three months in a row till April 2025.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hindustan Times
15 minutes ago
- Hindustan Times
RBI deputy governor T Rabi Sankar appointed member of 16th Finance Commission
RBI Deputy Governor T Rabi Sankar has been appointed as a part-time member of the 16th Finance Commission, the finance ministry said on Saturday. The appointment, the ministry said, is consequent to the resignation of one of the full-time members, former finance secretary Ajay Narayan Jha, on personal grounds. "The President has appointed T Rabi Sankar, Deputy Governor, Reserve Bank of India (RBI), as a part-time Member of the 16th Finance Commission (XVIFC)," the ministry said in a statement. Sankar will hold office from the date of assuming charge until the submission of the Commission's Report or October 31, 2025, whichever is earlier, it added. The commission, chaired by former vice chairman of Niti Aayog Arvind Panagariya, has four members and is assisted by Secretary Ritvik Pandey, two joint secretaries and one economic advisor. Retired bureaucrat Annie George Mathew and economist Manoj Panda are full-time members of the commission, while SBI Group Chief Economic Advisor Soumya Kanti Ghosh is a part-time member. The government constituted the 16th Finance Commission under the chairmanship of Panagariya on December 31, 2023. The panel would submit its report to the President by October 31, 2025. The report would be for five years commencing April 1, 2026. Besides suggesting tax devolution between the Centre and states and revenue augmentation measures, the commission will review the present arrangements for financing disaster management initiatives with reference to the funds constituted under the Disaster Management Act, 2005. The Finance Commission is a constitutional body to provide suggestions on centre-state financial relations. The erstwhile 15th Finance Commission under NK Singh had recommended that states be given 41 per cent of the divisible tax pool of the Centre during the five-year period 2021-22 to 2025-26, which is at the same level as was recommended by the 14th Finance Commission under YV Reddy.
Economic Times
18 minutes ago
- Economic Times
Indian markets advance in May, powered by 22% defence rally and microcap strength
Indian equities posted broad-based gains in May 2025, led by a stellar 22% surge in defence stocks and strong double-digit returns in microcap indices, as investors rotated into risk-on segments amid improving domestic sentiment and supportive global cues. ADVERTISEMENT The Nifty Microcap 250 jumped 12.10% in May, marking the strongest performance among major indices, while the Nifty Smallcap 250 gained 9.59% and the Nifty Midcap 150 rose 6.30%, according to Motilal Oswal. The benchmark Nifty 50 advanced 1.71% during the month, while the broader Nifty 500 climbed 3.50%, aided by sustained buying in industrials, consumer discretionary, and financial services. Sectorally, defence stocks delivered the most significant outperformance in May, rallying 21.84%, supported by strong order visibility, government-led indigenisation efforts, and continued investor interest in strategic manufacturing. The defence index has now gained 30.78% over the past 12 months, making it the top-performing sector both on a monthly and annual basis.'All major sectors shown positive trend except for FMCG and Utilities which saw a downtrend during this period of -0.09% and -0.04% respectively,' Motilal Oswal said in the report. ADVERTISEMENT Factor-based investing strategies also posted solid gains. The Momentum index rose 5.40%, followed by the Quality index with a 4.82% gain. The Enhanced Value index advanced 4.20%, while the Low Volatility index recorded a 1.39% strength in factor strategies, particularly Momentum and Quality, reflected investor preference for trend-following and fundamentally sound stocks amid a backdrop of robust earnings and favourable macro indicators. ADVERTISEMENT The broader market significantly outperformed large-cap peers through the month. The Nifty Next 50 gained 3.49%, while the Nifty 500's 3.50% rise was underpinned by strong participation from mid-cap and small-cap segments. ADVERTISEMENT The microcap rally stood out not just in monthly performance but also in year-on-year returns. The Nifty Microcap 250 delivered a 13.74% gain over the past year, while the Nifty Smallcap 250 rose 7.72%.This risk-on shift signalled a return of investor confidence in smaller companies, many of which are seen as high-growth bets with greater exposure to domestic consumption and capex cycles. ADVERTISEMENT The rally gained further momentum into June, after the Reserve Bank of India delivered a larger-than-expected policy rate cut on Friday, June RBI slashed the repo rate by 50 basis points and cut the cash reserve ratio (CRR) to improve banking sector liquidity—moves that were seen as highly accommodative and aimed at stimulating credit sectors responded sharply, with the realty index surging nearly 5% on the day. The BSE Sensex and Nifty 50 snapped a two-week losing streak, registering their first weekly gains in three weeks. The Sensex rose 737.98 points or 0.90%, while the Nifty added 252.35 points or 1% for the week ended June equity markets also contributed to the upbeat tone. The S&P 500 gained 6.15% in May, led by strength in information technology and consumer discretionary sectors. The Nasdaq 100 advanced 9.04%, while the Dow Jones Industrial Average added 3.94%.Emerging markets posted mixed results. Taiwan rose 12.52%, Korea gained 7.69%, and South Africa climbed 4.87%, helped by easing trade tensions and optimism around tariff prices declined 0.74% in May as geopolitical risks eased and demand for safe-haven assets moderated. In digital assets, Bitcoin rallied 11.11%, while Ethereum ended the month large-cap benchmark, the Nifty 50, ended May with a 1.71% gain, its third consecutive monthly rise, capping a rally driven by sectoral strength, broader market leadership, and supportive domestic and global June beginning on a bullish note following the RBI's unexpected rate easing, investors now turn to macroeconomic data and corporate earnings for further cues on the market's trajectory. Also read | 8 reasons why India cannot be ignored by FIIs (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
NDTV
18 minutes ago
- NDTV
Electric Scooters To Consider Over Ather Rizta, And Why?
Since its launch in July 2024, the Ather Rizta has gained popularity, selling over 100,000 units and earning praise for its family-friendly design and good range. However, as the electric scooter market grows, other models are emerging that provide better technology, performance, and value. In this article, we will look at three electric scooters that could be a good alternative to the Ather Rizta. Ultraviolette Tesseract The Ultraviolette Tesseract is an electric scooter built for those who crave speed and advanced features. It comes with different battery options, allowing for a range of up to 261 km on a single charge and a top speed of 125 km/h. The EV scooter is packed with modern features, including radar-based safety systems (ADAS), dual dashcams, wireless phone charging, a 7-inch touchscreen dashboard, and haptic feedback alerts for added rider safety. Also Read: KTM 450 Rally Replica Unveiled Alongside Special Sanders Edition In addition to its performance, the Tesseract offers 34 litres of under-seat storage and can charge from 20 per cent to 80 per cent in just 30 minutes. It's a great choice for anyone looking for more than just a basic scooter. Initially, the scooter was offered at an introductory price of Rs 1.20 Lakh (ex-showroom) for the first 50,000 buyers. Currently, the price of the electric scooter starts from Rs 1.45 Lakh (ex-showroom). TVS iQube If you need a dependable scooter for everyday commuting, the TVS iQube is a great option, offering 2.2 kWh, 3.5 kWh, and 5.3 kWh battery packs, making it perfect for city travel. One of its biggest advantages is TVS's wide network of dealerships and service centers, which gives buyers confidence. The iQube also comes with useful features like regenerative braking, app diagnostics, reverse assist, and smart connectivity, all designed to be user-friendly. For anyone seeking a reliable brand with strong performance, the iQube is a good choice. The TVS iQube S starts at Rs 1.09 lakh (ex-showroom) for the five-inch screen model and Rs 1.17 lakh (ex-showroom) for the seven-inch version. It has a 3.5 kWh battery for a range of 145 km. The TVS iQube ST costs Rs 1.28 lakh (ex-showroom) for the 3.5 kWh battery model, while the larger 5.3 kWh variant, offering up to 212 km of range, is priced at Rs 1.59 lakh (ex-showroom). Bajaj Chetak The Bajaj Chetak Electric combines a classic scooter look with modern EV technology. It has a range of 153 kilometres and a top speed of 73 km/h, which is perfect for city commuting. The affordable price tag of the electric scooter comes at the cost of a few features. However, it still has a feature list aimed at fulfilling owners' requirements. The list includes hill hold assist, a colour LCD cluster with Bluetooth and music control, call management, ride modes (Eco & Sports), LED headlights, and more. The Bajaj Chetak is available from a starting price of Rs 1.07 Lakh (ex-showroom) and goes up to 1.37 Lakh (ex-showroom).
