Core Viewpoint - The Reserve Bank of India (RBI) has decided to maintain the repo rate at 5.25%, which is expected to keep fixed deposit (FD) interest rates stable, following a previous cut of 125 basis points in 2025 [1][4][27]. Monetary Policy and Repo Rate - The RBI did not cut the repo rate this time due to controlled inflation, higher rates offered by small savings schemes, and a stable 10-year government security bond yield around 6.651% [4][27]. - Future repo rate cuts are possible if inflation, competitive interest rates, and the bond yield change [5][27]. Fixed Deposit Interest Rates - Public sector banks are currently offering a maximum FD rate of 7%, private sector banks are offering up to 7.20%, and small finance banks (SFBs) are offering the highest rate of 7.90% [11][27]. - The transmission of previous repo rate cuts is not yet complete, and some banks may still lower FD rates [2][27]. Investment Schemes - The RBI's floating rate bond offers an interest rate of 8.05%, while various small savings schemes provide rates over 7%, including the Senior Citizen Savings Scheme and the Sukanya Samriddhi Account [13][14][27]. Factors Influencing FD Rates - FD rates are influenced by the demand and supply of money, RBI policy rates, liquidity, credit demand, inflation expectations, and competition among banks and non-banking financial companies (NBFCs) [16][17][18]. - Higher inflation typically leads to increased FD rates as savers demand higher returns, while lower inflation can result in rate cuts [19][20]. Investor Guidance - Conservative investors are advised to ladder FDs and prioritize capital protection, while moderate investors may consider adding equities and short-duration bonds [28]. - In the event of falling FD rates, investors should avoid panic withdrawals and focus on credible banks under RBI oversight [25][28].

Core Insights - The Reserve Bank of India's Monetary Policy Committee (MPC) will announce decisions from its first meeting of 2026, focusing on interest rates, inflation targets, and growth projections [1] - The MPC is expected to maintain the current repo rate amid global economic uncertainty and domestic currency volatility [3] Meeting Schedule - The bi-monthly MPC meeting is set for February 4 to February 6, 2026, with the policy outcome announced at 10:00 a.m. IST on February 6, followed by a press conference at 12:00 noon IST [2] Economic Projections - The RBI has revised its GDP growth rate projection for FY26 to 7.3%, an increase of 50 basis points from previous estimates, while inflation is projected at 2% for FY26 [4] - The Economic Survey 2025-26 forecasts India's real GDP growth at 7.4% for FY26 and between 6.8% to 7.2% for FY27 [4] Recent Rate Changes - In 2025, the RBI implemented several rate cuts: 25 basis points in February, April, and December, and 50 basis points in June, maintaining a neutral stance throughout the year [5]

Core Viewpoint - The Reserve Bank of India's Monetary Policy Committee (MPC) is assessing the repo rate, liquidity trends, inflation outlook, and growth forecasts, with a decision expected on December 5, 2025 [1][6]. Group 1: Monetary Policy Decisions - In the October policy meeting, the MPC maintained the policy repo rate at 5.5% unanimously, citing a significant moderation in headline inflation as a reason for this decision [1][6]. - The RBI revised the inflation target for the current financial year to 2.6%, down from earlier projections of 3.1%, indicating a trend of decreasing inflation expectations [6]. Group 2: Economic Forecasts and Expectations - A poll of 20 economists indicated that 12 expect the RBI to cut the key rate by 25 basis points to 5.25% in the upcoming meeting, while the remaining eight anticipate the rate will remain unchanged [2][6]. - The central bank has previously cut the rate by 100 basis points to 5.50% since February and has maintained this pause since August, reflecting a cautious approach to monetary policy [6]. Group 3: Interest Rate Trends - Rates on outstanding loans have decreased by 54 basis points, while rates on outstanding deposits have fallen by 20 basis points, indicating a broader trend of declining interest rates in the economy [6]. - Fresh loans have seen a reduction of 100 basis points, and fresh deposits have decreased by 89 basis points, further illustrating the impact of the RBI's monetary policy adjustments [6].

The rate that financial institutions charge each other for lending on collateral collateral that critical repo rate has been the subject of some concerning volatility in the past several weeks and it has gained the attention of market participants and the Federal Reserve. A New York Fed official confirming to CNBC over the weekend that President John Williams quietly convened a meeting with representatives of most of the 25 primary dealers, urging them to continue using the Fed's new standing repo facility, ...

Argentina’s central bank cut its one-day peso repo rate by 300 basis points to 22%, according to people with direct knowledge of the matter, slowing a rebound in the currency https://t.co/rThcIEYWlK ...