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Lending Rates to Fall by 30 bps: SBI Report According to the latest report by the State Bank of India (SBI) , lending rates are expected to decline by 30 basis points (bps) following the RBI's recent policy rate cut . The reduction in the repo rate by 50 bps to 5.5% and the 100 bps CRR cut to 3% is anticipated to have a swift and visible impact on loans linked to the External Benchmark Lending Rate (EBLR) . Notably, EBLR-linked loans constitute about 60% of the total loan book of All Scheduled Commercial Banks (ASCBs) . The report states, "The steep cut on policy rates is expected to pass on to the EBLR-linked loan book immediately, with ASCBs' share of 60 per cent. Thus, the immediate impact on the average lending rate could be around 30 bps." Impact on Borrowing Costs and Bank Margins The SBI report explains that this rate cut will lower borrowing costs for retail and corporate customers , thereby stimulating credit demand . However, it also warns of a po...

📈 CPI May Rise Despite Stable Food Prices A recent report by the Union Bank of India (UBI) forecasts a possible increase in Consumer Price Index (CPI) inflation in the upcoming months. This prediction is based on two primary drivers: Rising global gold prices Ongoing international tariff wars Even if food prices remain stable , the cost of non-food essentials , especially precious metals like gold, is expected to put upward pressure on inflation. 🥦 April 2025 Retail Inflation Hits Six-Year Low According to inflation data released by the Ministry of Statistics and Programme Implementation on May 13, 2025 , India's retail inflation (measured by CPI) for April 2025 dropped to 3.16% , down from 3.34% in March. This marks a six-year low , largely due to price reductions in: Vegetables Pulses and related products Fruits Meat and fish Personal care and effects Cereals and cereal-based products The overall decline in April CPI represents an 18 b...

SBI Predicts Another RBI Rate Cut by April If Inflation Remains Favourable The State Bank of India (SBI) has projected that the Reserve Bank of India (RBI) may announce another rate cut as early as April 2025 , provided inflation continues to move in a favourable direction. This statement aligns with the RBI’s commitment to long-term price stability and sustained economic growth . According to SBI Research , the Monetary Policy Committee (MPC) has been closely monitoring inflation trends, especially food inflation , which remains a key concern. Despite positive indicators such as strong kharif production and easing vegetable prices , risks from adverse weather conditions persist. RBI’s Inflation Forecast and Policy Outlook 📉 The RBI has retained its FY25 inflation forecast at 4.8% , with Q4 inflation projected at 4.4% . 📉 For FY26, Consumer Price Index (CPI) inflation is estimated at 4.2% , signaling optimism for price stability. The MPC recently lowered the repo rate by 25 bas...

RBI Governor Shaktikanta Das Announce Monetary Policy: Repo Rate Unchanged at 6.5% In a crucial announcement on Tuesday, Reserve Bank of India (RBI) Governor Shaktikanta Das revealed that the Monetary Policy Committee (MPC) has decided to keep the policy repo rate steady at 6.5 per cent. This decision comes as retail inflation continues to hover above the central bank's target of 4 per cent, amid ongoing economic uncertainties both domestically and globally. Decision Details The MPC's decision was made by a majority, with four out of six members voting to maintain the current repo rate. As a result: - The Standing Deposit Facility (SDF) rate remains at 6.25 per cent. - The Marginal Standing Facility (MSF) rate and the bank rate are steady at 6.75 per cent. Governor's Emphasis on Balanced Monetary Policy Governor Das, in his post-policy press conference, underscored the importance of a balanced approach in monetary policy. He reiterated the MPC's commitment to graduall...

India's Wholesale Inflation Sees Marginal Rise in March Introduction: India's wholesale inflation, as measured by the Wholesale Price Index (WPI), experienced a slight uptick in March, marking the fifth consecutive month in positive territory after a prolonged period of negative growth. Official data released on Monday revealed key insights into the country's inflation trends, indicating both challenges and opportunities for the economy. Analysis: The annual rate of inflation, based on the All India Wholesale Price Index, stood at 0.53 percent in March 2024 compared to the same period last year. This positive inflation rate is attributed to several factors, including increased prices of food articles, electricity, crude petroleum, natural gas, machinery, and equipment, among others. While economists note that a modest rise in wholesale inflation can stimulate production incentives for manufacturers, it also underscores the need for careful monitoring to maintain economic st...