India's consumer price inflation climbed to a 20‑month high of 4.82% in August, surpassing the Reserve Bank of India's 4% midpoint target for the third month in a row. The persistent price pressure has revived market expectations of an early monetary policy tightening.
India's retail inflation rose to 4.82% in August, pushing the rate above the Reserve Bank of India's 4% midpoint target for the third consecutive month. The surge, fueled by higher food and fuel prices, could lead the central bank to reassess its monetary stance.
India's wholesale price inflation in August edged close to a double‑digit rise, prompting concerns that the pace could accelerate in September. The Reserve Bank of India is closely monitoring the trend as it exceeds its retail inflation target range.
India's women's cricket team will play Sri Lanka in the Asia Cup final at Dubai International Cricket Stadium on September 14, 2026, while the Reserve Bank of India denied Tata Sons' request to remain a private entity. On the same day, Uttarakhand raised the monthly stipend for MBBS interns to Rs 25,000 and Indian Railways reported 67.27 crore passengers in August 2026.
The Reserve Bank of India launched a special swap facility in June 2026 to attract non‑resident Indian deposits in foreign‑currency non‑resident (FCNR(B)) accounts, later closing the window on August 31, 2026. While the scheme exceeded its $50 billion target by mobilising over $127 billion, the RBI hedged only the principal amount, leaving interest‑payment risk to the banks.
On 7 September the Reserve Bank of India held an overnight cash withdrawal auction after a lackluster 30‑day VRRR auction, with banks parking a total of ₹3.53 lakh crore. The stronger response in the overnight auction suggests banks favour shorter liquidity‑parking periods.
This influx, driven by attractive interest rates of 6-7.5% and significant leverage incentives for non-resident Indians, occurred through the Reserve Bank of India’s concessional swap facility
10859122 Reserve Bank of India (RBI)
India's current account deficit widened marginally in the April-to-June quarter from a year ago on the back of higher commodity prices and a wider trade gap, the Reserve Bank of India said on Tuesday.
Monetary Policy Committee (MPC) unanimously decides to maintain the policy repo rate with a focus on sustainable disinflation and economic growth.
