Government expenditure is rebounding, leading to surplus liquidity in the banking sector as the Centre injects cash into the system. The Reserve Bank of India’s tolerance of this surplus suggests a potential shift toward softer monetary policy. Analysts note that government spending has been steadily increasing over the past few months, supporting economic growth.
RBI likely to hike repo rate by 25 bps to 5.50% in October policy: ET Poll
On Monday, the Reserve Bank of India’s Monetary Policy Committee will hold important meetings. Analysts are anticipating a 25 basis points increase in the key
October 5, 2026