8 result(s) for “Monetary policy”
Minutes from the Reserve Bank of India’s October policy meeting show policymakers increasingly worried that inflation is broadening beyond food and fuel, prompting a shift to a calibrated tightening stance and leaving the door open for further rate increases. The deliberations reveal trade offs for growth, markets and borrowers as India navigates an oil-driven inflation shock and a resilient economy.
Provisional government data show headline consumer price inflation rose to 5.54 percent in September 2026, driven by a sharp jump in food costs led by onions and other vegetables. The rise complicates the Reserve Bank of India’s path on rates and will squeeze household budgets ahead of winter.
The Indian rupee gained modestly on October 9, 2026 after early intervention by the Reserve Bank of India and a drop in oil prices. Traders said the central bank sold dollars to cap depreciation, a move that should limit imported inflation risks but leaves longer term pressure from global risks and capital outflows unresolved.
The Reserve Bank of India raised the repo rate by 25 basis points to 5.50 percent on October 8, 2026 and changed its policy stance to calibrated tightening. Markets reacted with higher bond yields, a weaker rupee and immediate pass through to retail and corporate lending rates.
On October 7, 2026 the Reserve Bank of India raised its policy repo rate by 25 basis points to 5.50 percent, its first increase since 2023, and shifted policy stance toward calibrated tightening amid rising inflationary pressures and strong growth.
The Reserve Bank of India intensified market operations on September 28 as the rupee edged higher amid oil price relief and the central bank moved to manage liquidity and bond yields ahead of a key policy week.
Government borrowing costs have climbed sharply across major economies, with the US 10-year Treasury yield reaching 5% and G7 yields rising to levels not seen since the global financial crisis era.
The Federal Reserve’s first interest-rate increase in more than three years has put borrowing costs back at the centre of business planning, with companies and investors now watching inflation, energy prices and the possibility of further rate increases.