Archive · 11 Dec 2025
Global Rate Cuts and Market Reactions
The US Federal Reserve cut interest rates by 0.25% and announced it would buy $40 billion in Treasury bills each month.
This is expected to help the Indian rupee and attract more foreign investments into India.
Meanwhile, the Indian rupee hit a record low of 90.48 against the US dollar due to various factors like uncertainty over a trade deal with the US and higher yields in US and Japanese debt markets.
The Reserve Bank of India also took steps to support the rupee and injected ₹50,000 crore into the banking system.
Experts believe these actions could help stabilize the rupee and boost investments in Indian markets.
The US Federal Reserve cut interest rates by 25 basis points and announced it would buy $40 billion in Treasury bills per month.
The Indian rupee hit a record low of 90.48 against the US dollar due to factors like trade deal uncertainty and higher global interest rates.
The Reserve Bank of India infused ₹50,000 crore into the banking system through an open market operation (OMO) purchase of government securities.
Experts believe the Fed's actions could attract foreign investments into Indian markets and support the rupee.
The Indian 10-year bond yield softened to 6.6122% after the RBI's liquidity infusion and the Fed's rate cut.
- Who
- US Federal Reserve, Reserve Bank of India, Foreign Portfolio Investors, Indian Government, Financial Markets
- What
- US Federal Reserve cuts interest rates by 25 basis points and announces Treasury bill purchases; Indian rupee hits record low; RBI infuses liquidity into the banking system
- When
- December 2025
- Where
- United States, India
- Why
- To stimulate economic growth and provide liquidity; to manage market reactions and support the rupee
- US Fed Rate Cut
- 25 basis points
- US Fed Rate Range
- 3.50% to 3.75%
- US Treasury Bill Purchases
- $40 billion per month
- Indian Rupee Record Low
- 90.48 against the US dollar
- Indian 10-Year Bond Yield
- 6.6122%
- RBI Liquidity Infusion
- ₹50,000 crore
- FPI Outflows from India
- $18 billion in 2025
- Fed's 2026 GDP Growth Forecast
- 2.3%
- Fed's 2026 Inflation Projection
- 2.4%
Sources
RBI rate cut gives further impetus to home loans
Public Sector Banks Now Hold 52% Market Share in Home Loans
GST and income tax bonanza see a revival in consumer durable credit
RBI buys $5.53 billion in bonds;10-year yield slips towards 6.60%
OMO auction for G-Secs purchase fully subscribed; banks get ₹50k liquidity
Fed rate actions seem out of sync with macro data
Rupee Hits Record Low of 90.46 Against Dollar on India-US Trade Deal Uncertainty
US Fed rate cut, bond buy could draw FPIs to India, support rupee
