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RBI governor Sanjay Malhotra announces raising repo rates by 25 basis points Follow live updates here: RBI hikes repo rate for first time since February 2023 MUMBAI: The RBI raised the repo rate by …

RBI governor Sanjay Malhotra announces raising repo rates by 25 basis points Follow live updates here: RBI hikes repo rate for first time since February 2023 MUMBAI: The RBI raised the repo rate by a widely expected 25 basis points to 5.50% on Wednesday as stronger-than-expected growth and broader price pressures prompted the Monetary Policy Committee to unanimously vote for a hike and shift its stance from neutral to calibrated tightening.The move will raise the EMI on a Rs 1 crore loan over 15 years by around Rs 1,500 a month, or about Rs 1,471 at a base rate of 8.50%. If the EMI remains unchanged, the higher rate could extend the loan by about 5.5 to 5.9 months, equivalent to six additional instalments. The rate hike is good news for savers and retired individuals living on fixed income. Bajaj Finance has been the first to announce a 15 to 40 bps increase in fixed deposit rates following the RBI decision.The RBI raised its FY27 real GDP growth forecast by 40 basis points from the August review to 7.1%, driven largely by a sharp revision in Q2 growth to 7.2% from 6.4%. The Q3 forecast was also raised while the Q4 projection was unchanged.The FY27 inflation forecast was raised by 20 basis points to 5.2%. All quarterly forecasts provided for comparison were revised higher, with the largest increase being the 30-basis-point rise in the Q1 FY28 forecast to 5.6%, while the core inflation forecast was raised to 4.4%.RBI governor Sanjay Malhotra said that strong capacity utilisation, healthy bank credit growth and the central government's continued capital expenditure and infrastructure push were supporting investment. Double-digit growth in merchandise exports, buoyant services trade and bilateral trade agreements were also supporting aggregate demand.CPI inflation rose to 4.8% in Aug from 4.5% in July. Malhotra said price increases had broadened beyond volatile items, with food inflation becoming more widespread, including increases in sugar and onion.He said the change in stance meant rate cuts were no longer the likely next move. "Given the current conditions, rate cuts are off the table in the near term and policy action ahead can only be a rate hike or a pause, depending on the evolving conditions and the outlook,” he said.The MPC expects headline CPI inflation to average nearly 5.8% over the subsequent three quarters. Malhotra said the inflation outlook had changed from a year earlier. "In the light of available data, it is clear that inflation and its outlook are not benign as they were last year... In this milieu, recalibrating the policy rate is imperative," he said.Headline CPI inflation is projected at 5.2% for FY27, peaking at 6.0% in Q3 before easing to 5.7% in Q4 and 5.6% in Q1 FY28.Deficient southwest monsoon rainfall and prevailing El Niño conditions pose risks to agricultural output. Renewed conflict in West Asia has increased crude oil price volatility, keeping energy and other input costs elevated.The indirect pass-through of commodity and energy costs is unfolding alongside upside risks from rapid growth in domestic monetary and credit aggregates.Malhotra said the indicators did not allow the RBI to cleanly separate second-round effects from supply pressures. "It may, however, be kept in mind that it is difficult to distinguish between the second-round effects and the indirect impact of supply side pressures (in production cost through energy and other inputs) as both are present in these indicators," he said.The RBI also cited tighter global financial conditions, US Federal Reserve rate hikes, high global bond yields and geopolitical instability in West Asia as external risks. It said India's external sector provided buffers against these pressures through steady capital inflows, remittances, services exports, a recovery in merchandise trade and foreign exchange reserves.

No. FD interest is taxable according to the depositor's applicable income-tax rules. The actual tax payable depends on total taxable income and the applicable tax regime. Banks deduct TDS when interest on an FD …

No. FD interest is taxable according to the depositor's applicable income-tax rules. The actual tax payable depends on total taxable income and the applicable tax regime. Banks deduct TDS when interest on an FD for a senior citizen crosses Rs 1 lakh in a specific bank. TDS is not an additional tax and can be claimed as a refund or adjusted against the final tax liability when filing the ITR. A senior citizen can submit Form 15H (now renumbered as Form 121 under the Income Tax Act, 2025) to avoid TDS if eligible under the applicable conditions.

Indian central bank hikes rates for first time in more than 3 years MUMBAI The RBI's rate hike was its first in more than three years. (AFP Photo) India's central bank hiked interest rates …

Indian central bank hikes rates for first time in more than 3 years MUMBAI The RBI's rate hike was its first in more than three years. (AFP Photo) India's central bank hiked interest rates for the first time in more than three years on Oct. 7, as the Middle East conflict stokes inflation in Asia's third-largest economy and batters a weakened rupee. The Reserve Bank of India (RBI) said the benchmark repurchase rate, the level at which it lends to commercial banks, would be raised by 25 basis points to 5.5 percent after a unanimous vote by a six-member panel. In doing so, the RBI shifted gears to join several central banks around the world who have raised rates to curb price rises or boost their currencies. Since the outbreak of the Iran war in February, the RBI has stood pat as it waited to assess the impact of volatile oil prices on the world's fastest-growing major economy. But resilient GDP growth last quarter has allowed it to focus on higher costs in a country that imports most of its energy and has been hit by a weak monsoon that could result in a spike in food prices. Retail inflation rose to 4.82 percent in August — the third straight month that headline inflation breached the RBI's medium term target of four percent — with data signalling that inflationary pressures had spread beyond food and transport. Adding to the central bank's calculations is pressure on the Indian rupee, which has been at near record lows over the past week. To stem the fall, the RBI has rolled out an array of moves to woo dollar inflows, including a deposit scheme for the Indian diaspora that raked in around $127 billion. While the steps helped stop the rupee's losses, the currency has faced fresh challenges as foreign investors continue to dump Indian equities and crude hovers around $100 a barrel. India, the world's third-largest buyer of oil, normally sources about half of its crude through the Strait of Hormuz, which has been effectively closed since the beginning of the Middle East war. Analysts say this makes India among the most vulnerable economies to a global energy shock, as higher crude and fertiliser prices drive up the import bill.

The Reserve Bank of India has increased the repo rate to 5.50% after maintaining it for several months. This shift to a calibrated tightening stance indicates a focus on controlling inflation risks. Retail inflation …

The Reserve Bank of India has increased the repo rate to 5.50% after maintaining it for several months. This shift to a calibrated tightening stance indicates a focus on controlling inflation risks. Retail inflation rose recently, prompting the central bank t… After cutting rates by 125 basis points in 2025 and then keeping the repo rate unchanged at 5.25% for four straight policy reviews, the Reserve Bank of India has changed course.On Wednesday, the RBI …

The Reserve Bank of India has unanimously decided to increase the benchmark repo rate by 25 basis points. This decision was made amid rising inflation projections and increasing US bond yields. The bank also …

The Reserve Bank of India has unanimously decided to increase the benchmark repo rate by 25 basis points. This decision was made amid rising inflation projections and increasing US bond yields. The bank also revised its economic growth forecast for FY27 to 7.… Mumbai: Monetary policymakers at the Reserve Bank of India (RBI), as widely expected, unanimously voted Wednesday to raise the benchmark repo rate by 25 basis points to 5.50% amid higher inflation pr…

India's central bank hiked interest rates today for the first time since 2023 as the Middle East conflict stokes inflation in Asia's third-largest economy and batters a weakened rupee. The Reserve Bank of India …

India's central bank hiked interest rates today for the first time since 2023 as the Middle East conflict stokes inflation in Asia's third-largest economy and batters a weakened rupee. The Reserve Bank of India (RBI) said the benchmark repurchase rate, the level at which it lends to commercial banks, would be raised by 25 basis points to 5.5% after a unanimous vote by a six-member panel. In doing so, the Reserve Bank of India shifted gears to join several central banks around the world who have raised rates to curb price rises or boost their currencies. Since the outbreak of the Iran war in February, the Reserve Bank of India has stood pat as it waited to assess the impact of volatile oil prices on the world's fastest-growing major economy. But resilient GDP growth last quarter has allowed it to focus on higher costs in a country that imports most of its energy and has been hit by a weak monsoon that could result in a spike in food prices. Retail inflation rose to 4.8% in August - the third month in a row that headline inflation breached the Reserve Bank of India's medium term target of 4% - with data signalling that inflationary pressures had spread beyond food and transport. "It is clear that inflation and its outlook are not benign as they were last year," Reserve Bank of India governor Sanjay Malhotra said in a televised address from financial capital Mumbai, noting that there was "some evidence of... generalisation of inflation". 'Calibrated tightening' "The MPC (monetary policy committee) also decided to change the stance to calibrated tightening," he said. "It underscored that given the current conditions, rate cuts are off the table in the near term, and policy action ahead can only be a rate hike or a pause, depending on the evolving conditions and the outlook," he added. The hike was the first since February 2023 and analysts said the central bank will likely lift them again. "The rising interest rate backdrop globally has reduced RBI's degrees of freedom. We see likelihood of another 50 bps hike this cycle," said Garima Kapoor of Elara Capital. Adding to the central bank's calculations is pressure on the Indian rupee, which has been at near record lows over the past week. To stem the fall, the Reserve Bank of India has rolled out an array of moves to woo dollar inflows, including a deposit scheme for the Indian diaspora that raked in around $127 billion. While the steps helped stem the rupee's losses, the currency has faced fresh challenges as foreign investors continue to dump Indian equities and crude hovers around $100 a barrel. India, the world's third-largest buyer of oil, normally sources about half of its crude through the Strait of Hormuz, which has been effectively closed since the beginning of the Middle East war. Analysts say this makes India among the most vulnerable economies to a global energy shock, as higher crude and fertiliser prices drive up the import bill.

Congress slams Centre after RBI raises repo rate to 5.5% Join conversation View All Comments → Share your thoughts in the comments Insightful Agree Disagree Skeptical Concerning Promising Worth Reading Big Development Post Comment …

Congress slams Centre after RBI raises repo rate to 5.5% Join conversation View All Comments → Share your thoughts in the comments Insightful Agree Disagree Skeptical Concerning Promising Worth Reading Big Development Post Comment Be respectful · TOI community guidelines NEW DELHI: The Congress on Wednesday attacked the Centre after the Reserve Bank of India (RBI) raised the repo rate by 25 basis points to 5.50%, saying the move would further increase the financial burden on the public.Calling Prime Minister Narendra Modi “inflation man”, the Congress said, “Inflation Man Modi's reign of terror continues. Now the public's back will be broken even further.”The party said the rate hike would push up borrowing costs for home, car, personal and business loans, resulting in higher EMIs and potentially longer repayment periods. “To curb inflation as per Modi's intent, the RBI has today raised the repo rate by 25 basis points to 5.5%,” it said."This means your home loan, car loan, personal loan, and business loan interest rates will now increase. Now you'll have to pay higher EMIs, and the loan repayment period will also get extended. The promise was of 'good days,' but what we got were days of extortion," he added.The RBI's monetary policy committee unanimously approved the hike and shifted its stance from neutral to calibrated tightening, citing stronger-than-expected economic growth and broader price pressures.The rate increase would raise the monthly EMI on a Rs 1 crore home loan with a 15-year tenure by around Rs 1,500, assuming a base rate of 8.50%. If borrowers keep their EMI unchanged, the higher interest rate could extend the repayment period by roughly six instalments.The RBI also raised its FY27 real GDP growth forecast by 40 basis points to 7.1%, while increasing its inflation projection by 20 basis points to 5.2%. RBI governor Sanjay Malhotra said stronger capacity utilisation, bank credit growth, government capital expenditure and infrastructure spending were supporting investment and demand.CPI inflation rose to 4.8% in August from 4.5% in July. Malhotra said price pressures had broadened beyond volatile items, with food inflation becoming more widespread, including higher sugar and onion prices.The Congress said the government's promise of “good days” had instead delivered “days of extortion”.

RBI Flags Elevated AI Asset Valuations, Geopolitical Tensions & High Debt As Major Risks To Global Economic Outlook | X / IANS Mumbai: The Reserve Bank of India has flagged elevated valuations of artificial …

RBI Flags Elevated AI Asset Valuations, Geopolitical Tensions & High Debt As Major Risks To Global Economic Outlook | X / IANS Mumbai: The Reserve Bank of India has flagged elevated valuations of artificial intelligence-related assets as one of the key downside risks to the global economic outlook, alongside geopolitical tensions, tighter global financial conditions and high public debt. Let us know! 👂 What type of content would you like to see from us this year? — HubSpot (@HubSpot) In its Monetary Policy Statement for 2026-27, the RBI said the global economy has remained resilient, but the re-escalation of the West Asia conflict and volatility in crude oil prices have kept the global economic environment uncertain. Governor said, “With a resolution of the West Asia conflict remaining elusive, significant downside risks to the global outlook remain, including further tightening of global financial conditions, continuing elevated AI-related asset valuations and high public debt”. The RBI's reference to AI-related asset valuations comes as part of its broader assessment of risks to global financial and economic conditions. The central bank also said the resolution of the West Asia conflict remains elusive, adding to uncertainty around the global outlook. The central bank also noted that inflation has accelerated in key economies, prompting a shift towards tighter monetary policy. The US Federal Reserve raised its policy rate by 25 basis points in September, while rate tightening by other major systemically important central banks has also strengthened expectations of higher global policy rates. Despite these risks, the RBI said the Indian economy has remained resilient. According to National Statistics Office estimates, real GDP growth in Q1 of 2026-27 stood at 7.8 per cent, higher than expected. Strong private consumption and fixed investment, a rebound in merchandise exports and sustained growth in services exports supported economic activity, the RBI said. On the supply side, manufacturing grew at a robust pace, while services activity strengthened on the back of domestic and external demand. The central bank said available high-frequency indicators for July-August suggest that domestic economic activity has maintained momentum in Q2. Domestic demand remains resilient and is supported by robust external demand, with merchandise exports registering double-digit growth. However, the RBI cautioned that global economic uncertainty could continue to affect domestic activity. Energy prices and supply chain pressures remain uncertain amid the West Asia conflict. The central bank said the adverse impact of these pressures is being contained through active diversification of supply sources. Domestic risks are also present. The RBI said a deficient southwest monsoon and strong El Niño conditions pose risks to agriculture and rural demand, although healthy foodgrain buffers and proactive government interventions are expected to reduce the impact. At the same time, continuing momentum in services and broadly stable employment conditions are expected to support urban demand. Strong capacity utilisation, robust credit flows and the government's infrastructure push are expected to sustain investment activity. The central bank revised the country’s growth projections for 2026-27 to 7.1 per cent from 6.6 per cent, with Q2 growth at 7.2 per cent, Q3 at 6.9 per cent and Q4 at 6.8 per cent. RBI also raised concerns over inflation pressures, saying headline CPI inflation is expected to average almost 5.8 per cent over the next three quarters, while core inflation is projected at 4.4 per cent for 2026-27. The RBI said the Indian economy remains resilient, but the combination of global financial tightening, geopolitical uncertainty, commodity price pressures and elevated AI-related asset valuations could shape the global economic environment in the period ahead. (Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)

Two factors worked to decide MPC’s move: inflationary pressures persist and growth is beating estimates. Hence, a hike in repo rate, while helping keep inflation in check, is unlikely to substantially impact GDP growth. …

Two factors worked to decide MPC’s move: inflationary pressures persist and growth is beating estimates. Hence, a hike in repo rate, while helping keep inflation in check, is unlikely to substantially impact GDP growth. The Indian economy has remained robust,… EMI CalculatorDetermine the monthly installment amount for a loan

Rising inflation forecasts, a fresh RBI rate hike to 5.50% and stubbornly high costs for fuel, food and imports have put borrowing and spending under pressure. At the same time, these conditions shift the …

Rising inflation forecasts, a fresh RBI rate hike to 5.50% and stubbornly high costs for fuel, food and imports have put borrowing and spending under pressure. At the same time, these conditions shift the spotlight to lenders that could benefit from higher le… Rising inflation forecasts, a fresh RBI rate hike to 5.50% and stubbornly high costs for fuel, food and imports have put borrowing and spending under pressure. At the same time, these conditions shif…