RBI keeps repo rate unchanged at 5.5%
RBI
) held policy rates steady at 5.5% with a unanimous vote from all six members of the
Monetary Policy
Committee (MPC), maintaining a 'neutral' stance. The decision aligns with market expectations, as the central bank awaits further transmission of earlier rate cuts and clarity on tariffs.
This marks the first status quo under Governor
Sanjay Malhotra
, who took office earlier this year. The RBI lowered its FY26 inflation forecast to 3.1% from 3.7% earlier, while retaining the growth projection at 6.5%.
Productivity Tool
Zero to Hero in Microsoft Excel: Complete Excel guide
By Metla Sudha Sekhar
View Program
Finance
Introduction to Technical Analysis & Candlestick Theory
By Dinesh Nagpal
View Program
Finance
Financial Literacy i e Lets Crack the Billionaire Code
By CA Rahul Gupta
View Program
Digital Marketing
Digital Marketing Masterclass by Neil Patel
By Neil Patel
View Program
Finance
Technical Analysis Demystified- A Complete Guide to Trading
By Kunal Patel
View Program
Productivity Tool
Excel Essentials to Expert: Your Complete Guide
By Study at home
View Program
Artificial Intelligence
AI For Business Professionals Batch 2
By Ansh Mehra
View Program
Speaking to the media, Malhotra said there wasn't enough data to revise gross domestic production (GDP) forecasts and noted, 'India is less dependent on the outside so far as inflation is concerned.'
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
After Losing Weight Kevin James Looks Like A Model
33 Bridges
Undo
Deputy governor Poonam Gupta added that half of India's inflation basket consists of food, limiting global impact.
In response to US President
Donald Trump
's 'dead economy' comment, the RBI governor said, 'We are contributing about 18% to global GDP growth, which is more than the US, where the contribution is expected to be much lower at 11%."
Live Events
'So, we are doing very well and will continue to further improve,' he said.
'Volatility Persists'
In April, the RBI had cut its FY26 growth forecast from 6.7% to 6.5% in the backdrop of the first set of tariff announcements from the Oval Office
'It is very difficult to predict what the impact will be going forward,' Malhotra said, on whether the projections factor in the impact of punitive tariffs.
'We are hopeful that we will have an amicable solution,' the RBI governor told the media, ahead of the US announcing an additional 25% tariff on Indian goods, following a similar increase on Tuesday.
SBI
chairman CS Setty said the RBI's decision to hold rates was expected, citing trade uncertainties and lagged policy effects. 'Inflation is likely to remain under check at 3.1% for FY26, and growth impulse is expected to be intact,' he said.
LOOMING TARIFF THREAT
The MPC's decision came ahead of US President Donald Trump imposing fresh tariffs over New Delhi continuing to purchase oil from Moscow which the Oval Office believes has helped fuel Russia's war efforts.
Economists estimate existing 25% tariffs could reduce growth by 20-30 basis points. One basis point is a hundredth of a percentage point.
Malhotra said MPC chose to go for status quo amid geopolitical uncertainties and 'wait for further transmission of the frontloaded rate cuts to the credit markets and the broader economy'.
The RBI had earlier cut rates by 100 bps and announced a phased 100 bps CRR cut starting September.
Goldman Sachs described the policy announcement 'somewhat hawkish'. The 10-year government bond yield climbed 9 basis points (bps) to 6.42%, reaching levels last seen in early May.
Yields have risen despite a 50 bps rate cut in June, and Wednesday's decision, along with the governor's comments, tempered expectations of a rate cut in October. 'There will be some volatility; we are living in very uncertain times,' he said. 'The US dollar has seen appreciation and then depreciation, movements on both sides of about 10%.'
The Indian rupee edged higher to 87.73 against the dollar, up from its previous close of 87.80.
The benchmark BSE Sensex retreated 0.21% to end at 80,543.
'GLOBAL GROWTH ENGINE'
Refuting comments from President Trump that India is a 'dead economy,' the governor said that India is contributing significantly to global growth.
Economists, including SBI's Soumya Kanti Ghosh, who had advocated easing rates by a quarter percentage point, said the central bank raised the threshold for any further rate cuts. However, Madhavi Arora, chief economist at
Emkay Global
, argued that focusing narrowly on one-year inflation projections is increasingly misplaced amid shifting global dynamics.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Indian Express
11 minutes ago
- Indian Express
Rural, urban consumer confidence on the upswing, but inflation likely to rise in FY27: RBI survey
Consumer confidence in both rural and urban areas saw a positive shift in July, according to the Reserve Bank of India's (RBI) forward-looking surveys. This improvement has been largely driven by a decline in retail inflation and lower interest rates. However, the RBI survey on inflation expectations also flagged a potential rise in retail inflation in the next financial year (2026-27), projecting retail inflation to climb to 4.4 per cent, up from the expected 3.1 per cent for 2025-26. The survey highlighted a modest improvement in rural consumer sentiment for the current period, with the Current Situation Index (CSI) ticking up slightly. This gain reflects better conditions across key indicators such as employment, income, price levels, and overall economic sentiment. Meanwhile, the Future Expectations Index (FEI), which gauges consumer outlook for the year ahead, continued to strengthen, marking its sixth consecutive improvement. These indices — CSI and FEI — are based on household responses to five key parameters: the general economic situation, employment, income, price levels, and spending patterns. The survey also showed that a greater number of rural households now expect inflation and prices to ease in the coming year. This shift in sentiment was supported by a drop in their current perception of inflation, along with a significant decline in expectations for future inflation. A similar trend was observed among urban consumers, whose confidence also saw a slight uptick, driven by more favourable views across most indicators. The urban CSI registered a modest gain, while future expectations remained firmly positive, indicating strong confidence in the economic outlook. The FEI also continued to improve, with the survey noting that concerns about inflation and prices have steadily decreased over the last three rounds. Households now expect price pressures to soften further over the next year. However, while optimism about current earnings has grown, expectations for future income have remained largely unchanged. The RBI's survey on credit conditions shows that banks continue to offer easy lending terms, with most respondents expecting stronger loan demand in the second quarter of 2025-26. This anticipated growth is driven by increased borrowing across sectors such as agriculture, mining, manufacturing, and retail or personal loans. Banks also expect loan terms to ease further, particularly for businesses in the manufacturing and services sectors. Overall, sentiment on loan demand remains upbeat through the fourth quarter of 2025-26, with the current favourable lending conditions likely to persist into the second half of the year. The survey did note, however, that loan demand in the first quarter had seen a seasonal dip across major sectors — a trend consistent with past patterns. According to the RBI's latest data, bank credit growth was at 9.8 per cent as against 14 per cent a year ago. Despite the current easing of inflation, the RBI survey on inflation projects that price pressures are likely to return in 2026-27. Headline inflation, as measured by the Consumer Price Index (CPI), is expected to rise from 3.1 per cent in 2025-26 to 4.4 per cent in the following year. While inflation is expected to remain subdued in the near term, a gradual increase is forecast in the latter part of the year. Core inflation — which excludes food, fuel, and intoxicants — is also expected to stay elevated within a narrow range during the upcoming quarters. These projections are in line with the outlook of the Monetary Policy Committee, which foresees a steady rise in inflation through the end of the fiscal year and into the first quarter of 2026-27. The findings underscore the need for careful monitoring and timely policy responses to manage inflationary risks effectively.
Time of India
19 minutes ago
- Time of India
Gold rate today: Gold prices climb as Donald Trump imposes 50% tariff on India; safe haven assets in focus
Gold rate today: The yellow metal approached the significant $3400 mark. (AI image) Gold rate today : Gold prices increased on Thursday due to heightened safe-haven demand after US President Donald Trump imposed an additional 25% tariff on Indian imports, intensifying trade tensions between the two economies. The spot gold price advanced 0.3% to $3,378.18 per ounce at 0452 GMT, whilst US gold futures climbed 0.4% to $3,445.60. The yellow metal approached the significant $3400 mark, as risk-based assets remained unsettled by continuous tariff announcements from the US president. "Trump has been dishing up fresh tariff threats which is keeping gold in the frame as a defensive play for investors," Tim Waterer, chief market analyst at KCM Trade, told Reuters. Also Read | Gold & silver price prediction today: Will gold continue trading above Rs 1 lakh mark - what's the outlook and should you buy or sell? Trump's decision came on the back of trade deal talk stalemate and India's continued procurement of Russian crude oil. The additional duty, which takes effect 21 days after August 6, will increase the total tariffs on certain Indian exports to 50%, which is the highest rate applied to any trading partner of the United States. Additionally, Trump announced plans to implement a 100% tariff on semiconductor imports. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 15 Most Beautiful Female Athletes in the World Learn More Undo However, he included a significant exception: companies that currently manufacture or have pledged to manufacture in the United States will be exempt from this tariff. The dollar index remained close to its lowest point in over a week following unexpectedly poor US employment figures last week, which led to speculation about a US rate reduction in September, thereby strengthening gold's position. Based on the CME Group's FedWatch Tool, market participants now estimate a 95% likelihood of a 25 basis point reduction in rates next month. Minneapolis Fed President Neel Kashkari indicated that the Federal Reserve might need to implement rate cuts soon due to the decelerating US economy. As a historically reliable safe-haven investment during times of political and economic uncertainty, gold typically performs well when interest rates are low. In other precious metals trading, silver increased by 0.5% to $38.04 per ounce, whilst platinum decreased by 0.4% to $1,328.77, and palladium showed a rise of 1.3% to $1,146.80. Stay informed with the latest business news, updates on bank holidays and public holidays .
Time of India
24 minutes ago
- Time of India
RRB Technician Recruitment 2025: Last day to apply for 6,238 posts at rrbapply.gov.in
The Railway Recruitment Boards (RRBs) had earlier announced an extension in the application deadline for the RRB Technician Recruitment 2025 under Centralised Employment Notification (CEN) No. 02/2025. Candidates seeking to apply for the posts of Technician Grade I Signal and Technician Grade III have until today, August 7, 2025, to submit their online applications. This recruitment drive aims to fill a total of 6,238 vacancies across various zones of Indian Railways . The recruitment notification, originally set to close earlier, offers eligible Indian citizens the opportunity to apply for these technical posts, with detailed information and application forms available on the official RRB websites. The application process is strictly online, and applicants are allowed to apply to only one RRB and for one post under a single Pay Level. Steps to apply for RRB Technician recruitment 2025 Candidates can follow the steps below to apply online for RRB Technician Recruitment 2025: Visit the official portal: Select your preferred RRB zone from the homepage. Click on the 'Apply Online' link under CEN No. 02/2025. Register with your basic details and generate login credentials. Log in and fill out the application form with educational and personal details. Pay the application fee through online payment options. Review all details and submit the form. Download and save a copy of the submitted application for future reference. Direct link to apply for the RRB Technician recruitment 2025 is available here. Overview of vacancies and application process The recruitment notification details 183 vacancies for Technician Grade I Signal and approximately 6,055 vacancies for Technician Grade III positions. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like You May Be Overpaying for Car Insurance - Find Out in Seconds AutoSaveMax Get Quote Undo The initial pay for Technician Grade I Signal is Rs 29,200, while Technician Grade III posts carry an initial pay of Rs 19,900. Age limits for candidates as on July 1, 2025, are set at 18 to 33 years for Technician Grade I Signal and 18 to 30 years for Technician Grade III. Applicants must apply only through the official website, . The online application window opened on June 28, 2025, and will close today, August 7, 2025. The exam dates for this recruitment will be announced at a later stage by the respective RRBs. Eligibility criteria and selection process For Technician Grade I Signal posts, candidates are required to hold a Bachelor's Degree in Engineering or Technology in any relevant discipline. For Technician Grade III, candidates must have passed Matriculation or SSLC and possess an Industrial Training Institute (ITI) certificate in the relevant trade, approved by NCVT or SCVT. The selection procedure for the RRB Technician Recruitment 2025 consists of a written examination, followed by document verification and a medical test. Candidates will be shortlisted based on their performance in these stages. Application fee and payment mode The application fee for General, OBC, and EWS candidates is Rs 500, out of which Rs 400 will be refunded after the examination. For SC, ST, women, and other eligible categories, the fee is Rs 250, which will be fully refunded post-exam. Payment of fees must be made online through the official application portal. All candidates are advised to keep track of official notifications for updates regarding the examination schedule and further recruitment details. The official detailed notification has been available on the participating RRB websites since June 28, 2025. TOI Education is on WhatsApp now. Follow us here. Ready to navigate global policies? Secure your overseas future. Get expert guidance now!
