Results
RBI Keeps Rates on Hold but Signals Possible Hike if Inflation Rises
The Reserve Bank of India's Monetary Policy Committee (MPC) has decided to maintain the current repo rate at 5.25%, offering a pause in the interest rate cycle. However, the MPC minutes reveal a strong underlying concern about inflation in India. Members cautioned that persistent or rising inflation risks could necessitate a future rate hike. Deputy Governor Poonam Gupta highlighted that conditions are not yet ripe for further rate cuts. The current inflation forecast suggests a potential peak around 5.9% in the third quarter of this financial year. This outlook, coupled with the ongoing monetary policy discussions in India, indicates that while a rate cut isn't on the immediate horizon, the possibility of an upward revision to interest rates looms if inflationary pressures intensify. This decision impacts the Indian economy and borrowing costs across various sectors.
The Reserve Bank of India's Monetary Policy Committee (MPC) has decided to maintain the current repo rate at 5.25%, offering a pause in the interest rate cycle. However, the MPC minutes reveal a strong underlying concern about inflation in India. Members cautioned that persistent or rising inflation risks could necessitate a future rate hike. Deputy Governor Poonam Gupta highlighted that conditions are not yet ripe for further rate cuts. The current inflation forecast suggests a potential peak around 5.9% in the third quarter of this financial year. This outlook, coupled with the ongoing monetary policy discussions in India, indicates that while a rate cut isn't on the immediate horizon, the possibility of an upward revision to interest rates looms if inflationary pressures intensify. This decision impacts the Indian economy and borrowing costs across various sectors.
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Axis Bank Shares Fall 4% Despite Strong Profit Growth as Brokerages Stay Bullish
- Axis Bank shares dropped 4% after quarterly profit rose 37.6% to ₹7,003 crore
- Net interest income grew 11.8%, while improving asset quality supported the bank’s performance
- Jefferies retained a Buy rating with a ₹1,700 target, despite concerns over margins and costs
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