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RBI Monetary Policy Committee Unlikely To Cut Rates In October: Report

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RBI Monetary Policy Committee Unlikely To Cut Rates In October: Report


New Delhi: The Reserve Bank of India’s monetary policy committee (MPC) is anticipated to maintain the status quo on the repo rate in its October review, considering the positive impact of GST reforms on demand, stronger-than-expected Q1 FY26 GDP growth, and an inflation trajectory which is expected to slope upwards thereafter, a report said on Thursday. 

The inflation trajectory remained lower due to GST rationalisation (FY2026 average now around 2.6 per cent). The transmission of the past 100 bps rate cut is assessed as nearly complete for fresh deposits (-94 bps) but muted for outstanding deposits (-18 bps), ICRA said in its report.

Similarly, the Weighted Average Lending Rate for fresh loans declined by 60 bps, compared to a 42-bps easing for outstanding loans. Further significant transmission to lending rates is considered limited in the coming months.

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According to the report, the 10-year G-sec yield for the government bond market is projected to trade between 6.40-6.60 per cent, with the yield curve expected to remain steep. This is due to comfortable liquidity keeping short-term rates steady, while long-term yields remain sticky amid fiscal concerns and demand-supply dynamics.

“Internationally, the spread between the 10Y India G-sec and the 10Y US Treasury yield widened to 236 bps in September 2025 from 209 bps at the end of June 2025, following a US Fed rate cut,” the report said. Systemic liquidity surplus cooled in September 2025 after being sizable in June-August 2025, due to advance tax outflows.

Additionally, a pending 75 bps CRR cut during October-November 2025 and G-sec redemptions (Rs. 1.0 trillion) in early-November 2025 are expected to support liquidity, offsetting festive season currency leakage pressure, the report stated.

The RBI may continue Variable Rate Repos (VRRs) to manage intermittent tightness. According to the report, GST rationalisation is expected to dampen headline CPI inflation by 25-50 bps during Q3 FY2026-Q2 FY2027 relative to earlier estimates

“Average CPI inflation for FY2026 is now projected at around 2.6 per cent (against 3.0 per cent earlier),” the report noted.



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First NHS sites join schools installing solar panels under Government scheme

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First NHS sites join schools installing solar panels under Government scheme



The first NHS sites are set to save on bills after installing solar panels under a £180 million investment from publicly owned Great British Energy, officials said.

Five sites across the country from hospitals to ambulance stations, along with three more schools, had solar panels installed over the summer, while a further eight schools are set to get the equipment in the autumn.

The five NHS sites and 11 primary schools are expected to save a combined total of £3.8 million over the 30-year lifetimes of the panels, which can be invested in health services and school equipment, the Department for Energy Security and Net Zero said.

It is part of an investment from Great British Energy announced by the Government in March to award £80 million for 200 schools in England and £100 million for nearly 200 NHS sites to install rooftop solar panels to help healthcare and educational settings curb rocketing energy costs.

Eleven schools are already saving on bills having switched on their solar panels in June, and all schools and hospitals under the scheme are expected to have their Great British Energy solar power running by April.

The Government said only a fifth of schools and one in 10 hospitals have solar panels installed, despite a typical school being able to save up to £25,000 a year and NHS sites potentially gaining savings of £45,000 annually from the technology.

Energy Secretary Ed Miliband said: “Great British Energy is helping your local school or hospital save money on its bills, to be reinvested into the frontline, from textbooks to teachers to medical equipment.

“Across the country, solar panels are going up on rooftops or carpark canopies, to power classrooms and operating theatres with clean, homegrown power.

“This is our clean energy superpower mission in action, protecting our public services with lower bills and energy security.”

Chris Gormley, chief sustainability officer at NHS England, said:  “Thanks to this new funding, we are set to expand solar generation by more than 300% across the NHS – slashing millions of pounds from energy bills, which can then be redirected into patient care.

“These new solar panels are expected to save the NHS £8.6 million every year once all the projects are completed, adding up to £260 million over their lifetime.

“That’s a massive leap towards a more sustainable, cost-efficient NHS.”



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Step up lending for public infra, MSMEs: FM Sitharaman to banks – The Times of India

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Step up lending for public infra, MSMEs: FM Sitharaman to banks – The Times of India


PUNE: Finance minister Nirmala Sitharaman on Thursday called upon banks and financial institutions with strong balance sheets to step up lending for public infrastructure, industry and the MSME sector.Addressing the Foundation Day event of Bank of Maharashtra, Sitharaman highlighted the critical role of banks amid growing global uncertainty. “The global environment has become increasingly unpredictable. The extent to which countries are affected depends on their exposure to these shocks and how well-prepared they are.”FM said despite the turbulence in the global economy, India showed resilience, supported by strong economic fundamentals and improved sovereign ratings from international agencies. She emphasised that India’s robust response to global challenges was not coincidental but driven by solid domestic demand and the inherent strength of its economy.Sitharaman also stressed the need for public sector banks to maintain professional management and a customer-centric approach. “Every complaint must be seen as an opportunity to improve, innovate and reinforce trust in the minds of the customers. Grievance redressal must go hand in hand with root cause analysis, systemic corrections in products, processes and conduct, besides a commitment to ensure the complaints do not recur.”At the event, department of financial services secretary M Nagaraju said the credit extended by banks to micro, small and medium enterprises (MSMEs) would aid in their expansion, helping them cope with financial stress in distressed sectors. “Govt has been laying great emphasis on providing more capital to MSMEs. But banks should also provide more capital to the MSMEs, both for expansion and recovery from stress, if there is any,” he said.





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Starmer ‘determined’ to reach a deal over US tariffs on Scotch whisky

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Starmer ‘determined’ to reach a deal over US tariffs on Scotch whisky



Sir Keir Starmer says he is “determined” to reach a deal on US whisky tariffs, but negotiations are ongoing.

The Prime Minister also said the implementation of a trade deal with India would be “very good for whisky in Scotland”.

The sector is concerned about the impact of tariffs – currently levied at 10% – on whisky exported from Scotland to the US.

The Scottish Government is also pushing for the sector to be exempted from tariffs levied by the Trump administration, with First Minister John Swinney flying to Washington DC to meet with the US president in the White House earlier this month. 

In an interview with BBC Scotland political editor Glen Campbell, the Prime Minister said he had raised the topic whisky with President Trump when they met during the state visit to the UK last week.

He said: “I absolutely understand how important it is for Scotland. It is part of our discussions.”

Asked if there is still a chance of a deal, he said: “Yes, and I want to get to the best possible outcome, and I’m determined to do so.

“Obviously, it’s a matter of negotiation. Our teams are discussing that.

“Alongside that, and separately, I want to bring forward the implementation of the India deal – which again for whisky, offers great opportunities.

“Different, of course, to the market in the US, but if we can achieve both of those things, that will be very good for whisky in Scotland.”



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