Tag: Monetary Policy Committee

IndustryLatest Stories

RBI Holds Interest Rate at 5.25%, Pauses Rate Cuts

NEW DELHI: Following a 25 basis point rate cut in December, the RBI has opted to pause its policy rate amid ongoing geopolitical uncertainties. This marks the first monetary policy review since Finance Minister Nirmala Sitharaman revealed the Budget for FY 2026-27. During the sixth and final bi-monthly monetary policy meeting of the current fiscal year, RBI Governor Sanjay Malhotra announced that the Monetary Policy Committee (MPC) has decided to maintain the short-term lending rate (repo rate) at 5.25 percent, adopting a neutral stance. The pause in rate cuts is influenced by the consumer price index (CPI)-based retail inflation, which…

Housing FinanceLatest Stories

LIC Housing Finance cuts new home loan rates to 7.15%

NEW DELHI: LIC Housing Finance Ltd announced on Monday that it has lowered its interest rate on new home loans to 7.15 percent. The new rates will take effect from December 22, 2025, with interest starting at 7.15 percent for newly sanctioned home loans. This decision comes as homebuyers continue to cautiously evaluate their purchasing choices, and the reduction is anticipated to enhance homebuyer sentiment. LIC Housing Finance aims to make home ownership more accessible with this initiative. This reduction follows the Reserve Bank of India’s Monetary Policy Committee’s recent 25 basis points repo rate cut. Published On Dec 22,…

IndustryLatest Stories

RBI Holds Rates Steady Amid Trump Tariff Uncertainty

MUMBAI: The Reserve Bank of India (RBI) has maintained its policy interest rate at 5.5% for the second consecutive time, citing concerns regarding tariff uncertainties. During the announcement of the fourth bi-monthly monetary policy for the current fiscal year, RBI Governor Sanjay Malhotra stated that the Monetary Policy Committee (MPC) unanimously opted to keep the short-term lending rate, known as the repo rate, unchanged at 5.5% with a neutral stance. Governor Malhotra indicated that while the rationalization of GST rates could have a moderating effect on consumption and growth, developments related to tariffs may hinder economic expansion in the latter…

IndustryLatest Stories

RBI Keeps FY26 Growth at 6.5%, Lowers Inflation to 3.1%

MUMBAI: The Reserve Bank of India announced on Wednesday that it is maintaining its GDP growth forecast for the current fiscal year at 6.5%, while reducing its inflation projection from 3.7% to 3.1%. During the release of the third bi-monthly monetary policy for 2025-26, RBI Governor Sanjay Malhotra noted that the favorable southwest monsoon, declining inflation, increasing capacity utilization, and supportive financial conditions are all contributing positively to domestic economic activity. The combination of strong monetary, regulatory, and fiscal policies, alongside significant government capital spending, is expected to drive demand. The services sector is predicted to maintain robust growth, particularly…