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Money policy

The RBI has stopped cutting. The next meeting is October.

Rates fell 1.25 points last year. They have sat at 5.25% through 2026. Cheaper money helps the car loan. It does not, by itself, raise grocery volumes or factory hiring.

RBI liquidity corridor

5.25% repo

Stance Neutral · last August 2026 · next October 2026

SDF 5.00%Repo 5.25%MSF 5.50%
CRR
3.0%
SLR
18.0%
FY27 GDP (RBI)
6.7%
FY27 CPI (RBI)
5.0%

2025–26

The cutting cycle, then the pause

Path reconstructed from the 125 bp 2025 easing to 5.25% (PIB / RBI) and the four consecutive 2026 holds.

Union Budget FY27

The fiscal companion

  • Deficit target4.3% of GDP
  • Capex, Apr–Jul₹4.5 lakh cr
  • GST FYTD₹10.43 lakh cr (11%)
  • April–July deficit at 26.8% of the full-year number — ahead of a linear path.
  • Capex is the political choice: ₹4.5 lakh cr already, vs ₹3.5 lakh cr a year earlier.
  • Gross GST in August was import-led (+29% on import GST; domestic +9.3%).

Calendar

What prints next

  • GST collections (September)

    MoF

    1 Oct 2026
  • RBI MPC — fourth quarter of the pause?

    Mumbai

    Early Oct 2026
  • CPI & IIP (September)

    MoSPI

    Mid Oct 2026
  • GDP Q2 FY27 (Jul–Sep)

    MoSPI

    Nov 2026
  • RBI forex reserves (Friday)

    RBI WSS

    Monthly