#sanjay malhotra

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Hindistan Merkez Bankası'ndan Tarihi Faiz İndirimi

New Post has been published on https://lefkosa.com.tr/hindistan-merkez-bankasindan-tarihi-faiz-indirimi-41316/

Hindistan Merkez Bankası'ndan Tarihi Faiz İndirimi

Hindistan Merkez Bankası, ekonomiyi canlandırmak amacıyla tarihi bir faiz indirimi gerçekleştirdi. Bu önemli adımın etkileri, piyasalarda nasıl hissedilecek? Detaylar ve analizler için makalemizi okuyun.

https://lefkosa.com.tr/hindistan-merkez-bankasindan-tarihi-faiz-indirimi-41316/ --------

[urbanagelandbase]

RBI Cuts Repo Rate to 6.25%: Impact on Economy, Investments, and Real Estate

RBI Cuts Repo Rate to 6.25% under New Governor Sanjay Malhotra, Maintains Neutral Stance

The Reserve Bank of India (RBI), under the leadership of newly appointed Governor Sanjay Malhotra, has reduced the repo rate by 25 basis points to 6.25%, marking the first rate cut after eleven consecutive meetings of unchanged policy. The Monetary Policy Committee (MPC) has opted to maintain a neutral stance, ensuring a balanced approach to economic growth and inflation control.

In a move to enhance liquidity, the Cash Reserve Ratio (CRR) was also reduced to 4% in December. Meanwhile, the RBI forecasts a strong GDP growth of 7.2% for the financial year 2024-25, signalling confidence in India's economic momentum.

This strategic adjustment aims to support credit expansion, investment, and economic stability, reinforcing India's position as one of the world's fastest-growing economies.

Key Highlights:

Repo Rate Cut: The RBI made its first repo rate cut since 2019 by lowering it by 25 basis points to 6.25%.

Growth Outlook: India’s GDP growth for FY26 has been increased to 6.7%, showing strong economic progress.

Inflation Forecast: The RBI expects inflation to stay at 4.2% in FY26, keeping prices stable.

Government’s Contribution: This move comes after the government cut personal tax rates in the federal budget, aiming to boost spending and support economic growth.

The Reserve Bank of India (RBI) announced a much-awaited 25 basis point (bps) cut in the repo rate, bringing it down to 6.25%. In an effort to boost economic development, the central bank has lowered interest rates for the first time in almost five years. Governor Sanjay Malhotra presided over the RBI's most recent Monetary Policy Committee (MPC) meeting, where the decision was reached. The central bank increased its forecast for economic growth in FY26 from 6.6% to 6.7% in tandem with the rate drop. Furthermore, for the same time frame, the RBI has forecasted inflation to be 4.2%.

The Significance of the Repo Rate Cut?

The RBI’s repo rate cut follows the government's recent decision to reduce personal tax rates in the Union Budget, a move aimed at boosting consumer spending. This rate cut is expected to further stimulate economic growth by making borrowing more affordable for both businesses and individuals.

A Reuters poll revealed that over 70% of analysts predicted this 25-basis point reduction. Lower interest rates are likely to encourage businesses to take loans for expansion, while individuals could benefit from more affordable home and auto loans. This increased borrowing and spending is anticipated to drive economic activity, supporting sustained growth.

Understanding the Repo Rate and Its Impact on You

The repo rate is the interest rate at which the Reserve Bank of India (RBI) lends funds to commercial banks to address short-term liquidity requirements. When the RBI reduces the repo rate, it lowers borrowing costs for banks, which often translates into lower interest rates on loans for consumers. This makes home loans, car loans, and personal loans more affordable, stimulating spending and encouraging investment. On the other hand, a higher repo rate increases borrowing costs, leading to lower inflation but potentially slowing economic growth as consumers and businesses reduce borrowing.

With the recent repo rate cut, borrowers can expect lower EMIs and easier access to credit, which will likely boost economic activity. However, reduced rates may lead to lower returns on fixed deposits and savings accounts, impacting individuals who depend on interest income.

The RBI’s move reflects a strategic shift towards supporting economic expansion while keeping inflation under control. Amid global economic uncertainties, the central bank’s decision will be crucial in shaping India’s financial landscape and determining the country’s economic trajectory in the coming months.

Combining Loan Benefits with Tax Savings

The economic advantages are further enhanced when these savings are considered in conjunction with the income tax exemptions included in the Union Budget 2025. People who earn up to ₹12 lakh in taxable income are excused from paying taxes under the new tax system. The tax savings might total ₹1.14 lakh per year for an individual making ₹25 lakh in gross salary. Together with the ₹1.50 lakh interest savings on a home loan of ₹50 lakh, the annual savings would come to ₹2.64 lakh, or roughly ₹22,000 every month.

RBI’s Repo Rate Cut: A Game Changer for Real Estate Growth

The Reserve Bank of India (RBI) has reduced the repo rate by 25 basis points, bringing it down to 6.25%, marking its first rate cut in five years. This move is expected to boost homebuyer confidence, stimulate housing demand, and encourage property investments, as home loan EMIs become more affordable.

Lower Borrowing Costs to Drive Housing Demand

Industry experts believe that reduced interest rates will significantly ease financial burdens on homebuyers and developers alike. With lower EMIs, homeownership will become more accessible, especially in the affordable and mid-segment housing categories.

A Boost for Real Estate & Economic Growth

The repo rate cut comes at a crucial time when economic momentum and liquidity need a push. Alongside recent measures in the Union Budget, this move will fuel infrastructure development, accelerate project completions, and support long-term real estate expansion.

Developers & Investors to Benefit

Developers will find it easier to access funds for new and ongoing projects, helping meet the rising housing demand. Additionally, investors may see improved returns, as lower interest rates often lead to increased property appreciation.

A Positive Shift for the Market

This policy shift signals a proactive approach by the RBI to sustain real estate growth. With rising urbanization and evolving buyer aspirations, the rate cut is set to play a crucial role in shaping India's housing market in the coming years.

[global-newz]

Sanjay Malhotra Appointed RBI Governor to Lead Inflation Battle

In a pivotal leadership transition, Sanjay Malhotra, a seasoned bureaucrat and top revenue officer, has been appointed as the new Governor of the Reserve Bank of India (RBI). Malhotra, a 1990 batch IAS officer of the Rajasthan cadre, will take charge as Shaktikanta Das completes his six-year tenure. The announcement, made by the Union Cabinet's Appointments Committee, marks a critical moment in India's ongoing fight against inflation.

From North Block to Mint Road

Having previously overseen India’s direct and indirect tax administration, Malhotra brings a wealth of experience in fiscal management. His extensive background includes leadership roles in financial services, power, mining, and IT. Like his predecessors Shaktikanta Das, D. Subbarao, Y.V. Reddy, and Bimal Jalan, Malhotra transitions from the finance ministry to helm India’s central bank, showcasing a tradition of blending fiscal expertise with monetary governance.

Inflation: A Persistent Challenge

Malhotra assumes office at a time when India is grappling with inflationary pressures. October's Consumer Price Index (CPI) inflation rate of 6.21% exceeded the RBI’s upper tolerance limit of 6%, driven by stubbornly high food prices. Tackling inflation within the RBI’s flexible 2-6% target range remains a priority for the Monetary Policy Committee (MPC).

In his final address, outgoing governor Das highlighted the importance of maintaining a vigilant anti-inflationary stance, expressing optimism that easing food price shocks would help align headline inflation with the target. However, experts predict a challenging road ahead for Malhotra, with projections of inflation normalization only by the September quarter of FY26.

New Leadership Dynamics

Malhotra’s appointment coincides with significant changes in the MPC. Recently, three new external members joined the six-member committee: Ram Singh from the Delhi School of Economics, Saugata Bhattacharya, a former Axis Bank economist, and Nagesh Kumar, head of the Institute for Studies in Industrial Development. They join internal members Rajiv Ranjan, Michael Debabrata Patra (Deputy Governor), and Malhotra himself. This reshuffle sets the stage for fresh perspectives in monetary policymaking.

The February 2025 MPC meeting, Malhotra’s first as governor, is expected to be closely watched. Economists from Capital Economics anticipate a potential 25-basis-point repo rate cut, signaling a possible shift in monetary policy under the new leadership.

External Pressures and Global Challenges

The global economic environment presents additional hurdles. Geopolitical tensions, supply chain disruptions, and surging commodity prices continue to exert inflationary pressure. Protectionist policies and trade tariffs, particularly from major economies, further complicate the outlook. As governor, Malhotra must navigate these external challenges while maintaining domestic economic stability.

A Strategic Appointment

Malhotra’s tenure is set to be pivotal, with his experience in fiscal policy and governance expected to influence his approach to monetary challenges. The blend of a new governor and recently appointed MPC members is anticipated to bring a fresh outlook to the RBI’s inflation-targeting strategy.

Economists like Madhavi Arora from Emkay Global Financial Services have noted that the macroeconomic landscape in 2025 presents distinct challenges compared to earlier years. Malhotra’s leadership will be crucial in steering India’s central bank through this complex economic terrain.

Conclusion

Sanjay Malhotra’s appointment as the RBI governor marks a new chapter in India’s fight against inflation. With his fiscal expertise and a revamped MPC, Malhotra is poised to lead the RBI through economic challenges, balancing growth, stability, and inflation control in an evolving global landscape. As India watches this transition, all eyes will be on the central bank’s policy trajectory in the coming months.

[radcollectionexpertthings-blog]

Sanjay Malhotra Appointed as New RBI Governor

[timelessnewsnow]

In a major development, the Indian government has appointed Sanjay Malhotra as the new Governor of the Reserve Bank of India (RBI), succeeding Shaktikanta Das. Malhotra, a seasoned bureaucrat from the Rajasthan cadre, takes charge at a pivotal time for India’s economy, with inflation concerns, a weakening currency, and slowing growth. His appointment also marks the continuation of a trend where finance ministry officials have been at the helm of the central bank.

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'you know that thing? it's broad, long-ish... words can't describe it'

Nayak: *immediately looks down*

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RBI MPC meeting: Central bank cuts repo rate to 6.25%, says Governor Sanjay Malhotra

Reserve Bank of India (RBI) Governor Sanjay Malhotra on Friday announced that the central bank has slashed the policy repo rate by 25 basis points from 6.5 per cent to 6.25 per cent. The decision was taken on a unanimous basis.  The MPC committee decided to maintain a neutral stance. The SDF rate shall be at 6 per cent and the bank rate shall be pegged at 6.5 per cent, he added. The governor said…

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SRK’s Jawan Movie Review : A Patriotic Movie

Today, we have the exciting opportunity to review the latest blockbuster movie, “Jawan.” Released on a Thursday in theaters, “Jawan” has been eagerly anticipated, thanks in part to the immense success of Shah Rukh Khan’s previous film, “Pathan.” In this review, we’ll dive into the captivating world of “Jawan” without revealing too much, ensuring that your movie-watching experience remains thrilling. 

Read More Here....

[head-post]

India’s central bank cuts rates for first time in nearly five years

The Reserve Bank of India (RBI) cut its key repo rate by 25 basis points to 6.25%, marking its first reduction in nearly five years, according Reuters.

The decision, announced on Friday, signals a shift towards a less restrictive monetary policy as the central bank seeks to stimulate India’s sluggish economy. The Monetary Policy Committee (MPC), comprising three RBI members and three external experts, unanimously voted for the rate cut and maintained a “neutral” policy stance.

India’s economy faced headwinds, with the government forecasting annual growth of 6.4% for the current fiscal year—below initial projections and the slowest pace in four years. Growth is expected to remain in the 6.3%-6.8% range next year, with the RBI projecting 6.7% expansion.

RBI Governor Sanjay Malhotra highlighted improving employment conditions, recent tax cuts, and strong agricultural output as positive factors. Inflation, which eased to a four-month low of 5.22% in December, is expected to gradually decline towards the RBI’s 4% target, averaging 4.8% this year and 4.2% next year.

The MPC while continuing with the neutral stance felt that a less restrictive monetary policy is appropriate at this current juncture.

Balancing stability and efficiency

Malhotra, who took office in December, emphasised the need to balance stability and efficiency in banking regulations. He signalled a potential shift from the tight regulatory approach of his predecessor, Shaktikanta Das. Malhotra also noted that the RBI would consider the trade-offs of new rules, such as higher capital requirements for infrastructure lending and digital deposits.

There are trade-offs between stability and efficiency. We will keep this trade-off in mind while formulating regulations. It will be our attempt to strike the right balance, keeping in view the benefits and costs of each and every regulation.

The Indian government has previously criticised stringent banking regulations for contributing to the economic slowdown. Since Malhotra’s appointment, the rupee has weakened, and market volatility has increased, prompting speculation of a softer stance on currency management.

Malhotra reiterated that the RBI’s interventions aim to smooth “excessive and disruptive volatility” rather than target specific exchange rates. The rupee fell marginally after the policy announcement, trading close to its record low.

The rate cut reflects the RBI’s efforts to support growth while managing inflation risks, marking a cautious yet significant step towards easing monetary policy.

Read more HERE

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Our primary objective is price stability: RBI governor Sanjay Malhotra

MUMBAI: RBI governor Sanjay Malhotraassured markets that the central bank would provide all the liquidity required to ensure that interest rates are passed on. In his first media interaction, he provided a peek into his thought process. Excerpts:What gives you optimism about growth?We analyse all parameters regularly, including high-frequency indicators.Whether one looks at agriculture – with…

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RBI MPC: Repo Rate 0.25% decreased, inflation in control, new domain for banks; 10 big things about the first policy of new governor Sanjay Malhotra, Rbi mpc key points: The Reserve Bank of India ...

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RBI MPC meeting: Central bank cuts repo rate to 6.25%, says Governor Sanjay Malhotra

Reserve Bank of India (RBI) Governor Sanjay Malhotra on Friday announced that the central bank has slashed the policy repo rate by 25 basis points from 6.5 per cent to 6.25 per cent. The decision was taken on a unanimous basis.  The MPC committee decided to maintain a neutral stance. The SDF rate shall be at 6 per cent and the bank rate shall be pegged at 6.5 per cent, he added. The governor said…

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RBI MPC meeting: Central bank cuts repo rate to 6.25%, says Governor Sanjay Malhotra

The Governor of Sanjay Malhotra’s India Reserve (RBI) Bank announced Friday that the Central Bank had cut policy repo rate 25 base points from 6.5 percent to 6.25 percent. The decision was made on a unanimous basis. The MPC Committee decided to maintain a neutral stance. The SDF rate must be at 6 percent and the bank rate must be polished at 6.5 percent, he added. The governor in his address said…