Rupee Weakens to ₹95/$; RBI Forex Assets Fall $16Bn, FPI Outflow Hits $13.6Bn in March

RBI Holds Repo Rate at 5.25%, Lowers GDP Growth Forecast to 6.7% for FY27

RBI kept the repo rate unchanged at 5.25% citing a hazy outlook due to monsoon uncertainties, El Niño, geopolitics, and global trade policy. Growth projection for FY27 was lowered to 6.7% while CPI inflation is projected at 5.0% with upside risks from food and fuel supply shocks. Students must memorize these key data points for Prelims and understand the growth-inflation trade-off for Mains.

RBI Holds Repo Rate at 5.25%, Maintains Neutral Stance, Raises GDP Forecast to 6.7%

RBI MPC kept repo rate unchanged at 5.25% amid global uncertainties, raised GDP growth forecast to 6.7% and lowered inflation projection to 5%. Students must note the neutral stance, unanimous decision, and the context of West Asia conflict and volatile crude oil prices.

RBI's Forex Swap Facility Draws $136B: $127B via FCNR (B) Deposits, Rupee Relief

RBI's special USD-INR forex swap facility, introduced to counter forex outflows from high oil prices and FPI exits, has mobilized over $136 billion, with FCNR (B) deposits alone contributing $127 billion. This massive inflow is strengthening India's forex reserves and stabilizing the rupee, offering a critical cushion against external sector vulnerabilities.

US Fed Hikes Rates to 3.75–4%; RBI MPC Seen Raising Repo Rate to 5.5% in October

The US Federal Reserve has raised the federal funds rate target range by 25 bps to 3.75–4%, its first hike in three years, with all 12 FOMC members voting in favour. With India's CPI inflation at 4.82% in August and price pressures generalising, the RBI's MPC (Oct 5–7) is expected to hike the repo rate by 25 bps to 5.5%. This is a high-yield monetary policy development for Prelims and Mains.

US Fed Raises Rates by 25 bps to 3.75-4%, Inflation Stays at 3.4% - Implications for RBI MPC

US Fed raised rates by 25 bps to 3.75-4% as inflation remains high at 3.4%. Trump opposes the hike but central bank independence is key. This signals global tightening ahead of RBI MPC meeting in October, raising chances of rate action in India.

CPI Inflation Rises to 4.82% in August, RBI MPC to Meet Oct 5-7 for Rate Decision

India's CPI inflation rose to a 8-month high of 4.82% in August, driven by food price spikes in sugar (19% MoM) and onion (22% MoM). This strengthens the case for a repo rate hike at the upcoming RBI MPC meeting (Oct 5-7), which would be the first increase in 3.5 years. The news is critical for exam aspirants as it directly tests monetary policy tools, inflation targeting framework, and current economic data.

RBI's Concessional Forex Swap Facility Mobilises $40.82 Billion by July 31, 2026

The RBI's concessional swap facility has attracted $40.82 billion in forex inflows by July 31, 2026, with FCNR(B) deposits accounting for the bulk ($36.725 billion). This facility was announced on June 5 to strengthen balance of payments and incentivize capital inflows amid global uncertainties.

RBI Net Sells $14.9 Bn (Jan-May 2026) for Rupee Stability; FCNR(B) Swap, ECB Boost Inflows

RBI's net sale of $14.9 billion in the first five months of 2026 underscores its interventionist approach to curb excessive rupee volatility, a key topic for economy-focused exams. The accompanying measures like the FCNR(B) swap facility and ECB liberalisation are crucial for understanding forex management and capital inflows.