INFLATIONARY PRESSURES
RBI’s rate hike matters. Its shift to calibrated tightening matters more
The RBI’s 25-basis-point repo rate hike to 5.5% marks a shift towards calibrated tightening as inflation risks broaden amid elevated oil prices, weather disruptions and resilient domestic demand. With inflation expected to average nearly 5.8% over the next three quarters, the policy move signals scope for further rate increases.
Gold slides to two-month low as robust dollar, yields add pressure
Gold prices have fallen to a two-month low due to a strong US dollar and rising Treasury yields. Spot gold dropped 1.6% to $4,096.13 per ounce, while silver also faced significant declines. The Federal Reserve's policy decisions are anticipated to influence future interest rate hikes, affecting gold's appeal. China's central bank continued its long-term gold purchasing trend, contributing to market dynamics.
Repo rate hike may raise borrowing costs, but real estate demand likely to be resilient: Realtors
The Reserve Bank of India increased the repo rate by 25 basis points to 5.50 percent. Real estate companies in West Bengal anticipate a slight rise in borrowing costs for home loans. Developers believe that genuine homebuyers will remain undeterred in the long term. Concerns about affordability for first-time buyers may arise during the festive season. Developers are introducing flexible payment plans to sustain demand despite these pressures.
RBI may hike interest rate further in December policy: Experts
The Reserve Bank of India has shifted its policy stance to calibrated tightening amid rising inflation concerns. A rate hike of up to 50 basis points is anticipated in December, increasing the current benchmark rate. Various economists emphasize the likelihood of cumulative rate increases over the next months. Rising commodity prices and global market volatility are influencing these monetary policy decisions.
Global Market: UK Gilt yields rise as oil, US Treasury yields weigh on bonds
British 10-year gilt yields jumped 6 basis points to 5.44%, nearing a 19-year high, as rising oil prices and US Treasury yields fueled inflation concerns. Investors also focused on Britain’s upcoming October 28 budget and fiscal outlook. Potentially higher borrowing needs and weak global bond markets added pressure to government debt.
IMF chief warns energy shock, growing debt and AI risks threaten global growth
IMF chief Kristalina Georgieva warned that high energy prices, record public debt and the AI investment boom are fuelling inflation and threatening global stability. She urged high-debt economies to pursue fiscal consolidation and central banks to maintain a cautious, hawkish stance.
- Go To Page 1
RBI MPC Key Takeaways 2026: Repo rate hiked to 5.50%, FY27 GDP growth forecast raised to 7.1%
RBI Monetary Policy 2026 Takeaways: The Reserve Bank of India raised the repo rate by 25 basis points to 5.50%, the first increase since February 2023. The GDP growth forecast for FY27 was raised from 6.7% to 7.1%, highlighting resilient economic activity. Meanwhile, CPI inflation projection was revised up to 5.2% due to rising food and fuel prices. The Monetary Policy Committee shifted its stance to calibrated tightening, emphasizing inflation containment.
RBI allows Sebi-regulated depositories to show bank deposit details in consolidated A/C statements; what it means for you
The RBI announced measures to enhance customer convenience, including allowing SEBI-registered depositories to include bank deposit details in consolidated account statements (CAS) and enabling interoperability among NBFC-Account Aggregators. Both measures will be operational by December 31, 2026. The central bank also announced a Technical Consultative Committee for Financial Markets to strengthen engagement with market participants and stakeholders.
Nifty earnings seen rising 27%, strongest growth in 17 quarters in Q2: Motilal Oswal
India’s Q2FY27 earnings season is expected to mark a strong recovery in corporate profitability, with Nifty 50 earnings projected to grow 27% YoY, the highest in 17 quarters, according to Motilal Oswal. While resilient domestic fundamentals and liquidity support the outlook, persistent FII outflows, weak foreign investor sentiment and global macroeconomic pressures remain key challenges for Indian equities.
RBI MPC Date and Time: Guv Sanjay Malhotra to share key update on repo rate, inflation & more; check when and where to watch live speech
RBI MPC Meeting October 2026: RBI officials are holding a three-day Monetary Policy Committee meeting amid inflationary pressures and rising crude oil prices. The repo rate has remained unchanged at 5.25 per cent for consecutive meetings after a series of cuts. Experts anticipate a 25-basis-point hike, potentially reaching 5.75 to 6 per cent in upcoming meetings. The Governor is set to deliver live MPC speech at 10 am.
Dabur expects double-digit Q2 revenue growth on strong India FMCG, overseas demand
Dabur India expects consolidated revenue to grow in double digits in the September quarter, supported by strong performance across its India FMCG portfolio and sustained international growth. Rural demand outpaced urban markets, while e-commerce and quick commerce remained strong. Higher input costs, however, weighed on operating margins during the quarter.
World Bank flags oil, El Niño and global market risks to growth
The World Bank has revised its growth forecast for South Asia, projecting a robust 6.9% by 2026, driven by a surge in consumer demand. India, leading the region's economy, is expected to achieve a 7.1% growth. However, persistent high inflation and potential spikes in energy prices pose risks to this growth.
Dabur India expects double-digit revenue growth in Q2 FY27
Dabur India anticipates strong double-digit growth in its consolidated revenues and India FMCG business for the upcoming quarter. Demand conditions have remained steady despite challenges such as inflation and geopolitical tensions affecting operations. The company expects robust performance particularly in its Home & Personal Care and Food and Beverages segments. Modern Trade and emerging distribution channels are also expected to drive growth significantly.
Global Market: Euro under pressure as France debt worries, Spain vote weigh
The euro hovered near a 17-month low at $1.1219 amid euro zone political uncertainty, high debt and French fiscal concerns. Meanwhile, the dollar strengthened as US Treasury yields climbed, with persistent inflation limiting expectations for monetary easing. Markets also monitored potential Bank of Japan tightening as the yen remained weak against the dollar.
World Bank raises India FY27 growth forecast to 7.1%, flags oil, El Niño risks
The World Bank has upgraded India's economic growth forecast to 7.1% for fiscal 2026-27. This change reflects strong domestic consumption, despite ongoing inflationary pressures. Other major forecasters, including Moody's and S&P Global Ratings, have also revised their projections upward. However, elevated oil prices and potential climate-related challenges pose risks to this outlook. The World Bank emphasizes the need for accelerated AI adoption in the region for sustained economic growth.
Godrej Consumer expects high-teens revenue growth in Q2 despite inflationary pressures
Godrej Consumer Products Ltd anticipates strong consolidated revenue growth in the upcoming September quarter. This expected growth is driven by high demand across various markets and portfolios. The company is adapting to challenges posed by rising commodity prices through strategic pricing and cost management.
RBI MPC begins 3-day meeting today amid expectations of first rate hike since 2023
The Reserve Bank of India's Monetary Policy Committee is meeting to discuss potential interest rate hikes. Inflationary pressures and external factors are leading to anticipation of a rate increase. Analysts expect a 25 basis points hike in the upcoming policy announcement. This decision aligns with current inflation trends and economic forecasts for the country. The market is closely monitoring these developments as they will impact future economic stability.
Global Market: BOJ's Uchida warns AI boom could trigger market correction
Shinichi Uchida, the Deputy Governor of the Bank of Japan, underscored the significant influence of artificial intelligence on the financial landscape. He noted that escalating asset prices could trigger market corrections if anticipated AI returns fail to materialize. Uchida also suggested that robust demand for AI might alter Japan's natural interest rates.
RBI likely to hike repo rate by 25 bps to 5.50% in October policy: ET Poll
On Monday, the Reserve Bank of India's Monetary Policy Committee will hold important meetings. Analysts are anticipating a 25 basis points increase in the key interest rate, raising it to 5.50%. The surge in inflation is attributed to elevated crude oil costs and subpar agricultural production. Many economists advocate for a rate hike as a crucial measure to tackle ongoing inflation issues, with outcomes to be revealed on October 7.
RBI may increase rates by 0.25 pc in Oct policy amid inflationary pressures, experts poll shows
The RBI is expected to raise the repo rate by 25 basis points in its October policy review as inflation pressures build from higher crude prices, the West Asia conflict and global monetary tightening, according to a PTI poll of economists and bankers. Most also expect a hawkish tone, a higher FY27 inflation forecast and possibly further rate hikes later in the fiscal year.
Fed's Cook sees AI inflationary push as a top 2027 risk
Cook joined a unanimous vote last month at the Fed to raise the policy rate by a quarter of a point to support a "timelier" return of inflation to the Fed's 2% goal. Inflation by the Fed's targeted measure was 3.4% in August and has been above the goal for more than 5-1/2 years.
Bets on US Federal Reserve rate hike in October fall as job market cools
Last month, the US economy added only 29,000 jobs, significantly below the economists’ forecast of 90,000 jobs. The unemployment rate rose to 4.2%, indicating a slight deterioration in the labor market. Traders decreased expectations for another Federal Reserve interest rate hike later this year, with less than a 20% chance for October. Despite a recent rate increase, inflationary pressures remain a concern for policymakers.
SBI Research sees CPI inflation at 5.65% in Sept, above 6.5% in Oct-Nov
SBI Research forecasts a rise in CPI inflation to around 5.65 percent in September. They expect it to exceed 6.5 percent during October and November. Inflationary pressures have broadened significantly since the last monetary policy meeting. Additionally, the weakening rupee poses further risks to economic stability. The Reserve Bank of India may adjust its GDP growth and inflation projections during the upcoming policy review.
Global markets rattled as bond yields surge, offsetting AI-stock optimism
Global bond market volatility led to declines in stock indexes, with the S&P 500 on track for consistent losses. Oil prices rose, contributing to persistent inflation, while economic reports indicated US resilience despite challenges. The 10-year Treasury yield hovered near a 2002 high, raising concerns for real-estate stocks. Technology stocks demonstrated some strength, aided by Micron Technology’s better-than-expected quarterly profit.
Global bond rout hoists benchmark Indian yield to mid-2024 high before RBI policy
A significant selloff in Indian government bonds occurred as global yields rose and inflation pressures heightened. The Indian benchmark 10-year yield reached its highest level since April 2024. Traders expect the Reserve Bank of India to announce a rate hike at its upcoming policy meeting next week. Additionally, concerns regarding excessive liquidity in the banking system have intensified amid upcoming bond issues.
Fed rate hike 'not urgent', says John Williams; Austan Goolsbee warns against 'playing with fire'
Federal Reserve Bank of New York President John Williams stated there could be one more interest rate increase before year-end. He emphasized that the central bank is not in a hurry to act immediately as it awaits more economic data. Williams projected that inflation might end the year at approximately 3.5% before returning to the Fed's target by 2028.
US 30-year Treasury yield tops 5.6%, reaching highest level since 2002
Yields on the 30-year US Treasury bond have risen to levels not seen since 2002. This increase is part of a prolonged selloff in the global Treasury market, driven by various economic factors. Rising energy prices are contributing to higher inflation and increased expectations for rate hikes. Notably, a significant corporate bond issuance has also exerted pressure on the market.
US Market: Fed's Hammack warns against inflation becoming entrenched in economy
Federal Reserve Bank of Cleveland President Beth Hammack warned that persistently high inflation could entrench elevated price expectations among US households and businesses. She said monetary policy may not yet be sufficiently restrictive, citing resilient demand, strong business investment and a stable labour market. Hammack also noted that rising US bond yields reflect higher real interest rates and a solid economic outlook.
Food Ministry asks edible oil firms to pass on full benefit of import duty cuts
The Food Ministry has requested edible oil companies to reduce distributor prices following recent import duty reductions. This directive aims to ensure consumers receive the full benefit of the cuts in import tariffs. The duty reductions are part of efforts to control inflation and stabilise domestic cooking oil prices. India's vegetable oil imports have risen, indicating increased demand influenced by factors like a weaker rupee.
Load More
