RBI Governor Sanjay Malhotra in today’s MPC meet, confirmed a 25 basis point cut in the repo rate, bringing it down to 6%. The stance has shifted from neutral to accommodative. He also said they’re expecting the economy to grow at 6.5% in FY26. Looks like the RBI is leaning more toward supporting growth now.
Watch it live here:
Here’s a quick summary from RBI’s April MPC meet:
- Repo rate cut by 25 bps to 6%
- Policy stance changed to accommodative.
- Inflation for FY26 is seen at 4%, assuming a normal monsoon. Food prices have come down and crude’s eased too, so the outlook looks better.
- GDP forecast: Real GDP growth for FY26 projected at 6.5% in Q1, 6.7% in Q2, 6.6% in Q3, and 6.3% in Q4.
- RBI says global uncertainty is a concern, so this cut is to support the economy while keeping inflation within the target range.
The next MPC meet scheduled for June 4 - 6, 2025. Here’s the circular from RBI’s April 2025 MPC meet: RBI Circular
You can read the full statement by the RBI Governor Sanjay Malhotra here.
Fair move by RBI? What do you think? Share your thoughts. 