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Economic Times
06-08-2025
- Business
- Economic Times
RBI MPC Meeting 2025-26 Key Takeaways: Check what RBI Gov Sanjay Malhotra announced
Synopsis RBI Monetary Policy Meeting 2025-26 Key Takeaways: The RBI's MPC is set to announce its new monetary policy on Wednesday, following a significant rate cut in June 2025. Amid global economic uncertainties, the RBI has already reduced the repo rate thrice this year. The June MPC meeting saw the repo rate lowered to 5.5%, with GDP growth projected at 6% Reuters RBI MPC Meeting 2025-26 Key Takeaways The Reserve Bank of India's Monetary Policy Committee (MPC) is said to announce the new monetary policy on Wednesday after a massive rate cut of 50 basis points announced in June central bank has slashed the repo rate thrice this year amid global uncertainties on tariffs, protectionism, and trade wars that are affecting the global trade and growth MPC started deliberations on the bi-monthly monetary policy on August 4 and is all set to announce the decision on August 6 (Wednesday)."Since the February 2025 MPC, the RBI has started to support growth by cutting policy rates. The repo rate has been cut by 50 basis points in two instalments, besides massive liquidity expansion," said MPC member Nagesh Kumar. The Repo Rate is reduced to 5.5% The Standing Deposit Facility (SDF) rate is now 5.25% The Marginal Standing Facility (MSF) and Bank Rate decreased to 5.75%. The Cash Reserve Ratio (CRR) reduced to 3% The RBI also changed its policy stance from 'accommodative' to 'neutral'. "As regards the stance for monetary policy, it is important to keep in mind that the stance not only reflects the current macroeconomic conditions, but more importantly the outlook that goes into policy calculus," RBI Governor Sanjay Malhotra said in June. In June, India's GDP growth for 2025-26 was projected at 6.5%, continuing the previous quarter-wise forecasts were as follows: Q1: 6.5% Q2: 6.7% Q3: 6.6% Q4: 6.3% In the last MPC meeting, the central bank's inflation announcements were as follows: Headline CPI inflation went down from 4% in February 2025 to 3.7% in April 2025 Food inflation has declined Fuel inflation stayed in deflation The quarterly forecast were as follows: Q1: 2.90% Q2: 3.40% Q3: 3.9% Q4: 4.4% In the last MPC meeting, RBI stated that outlook for food inflation is looking good, due to the record wheat harvest and strong pulse and kharif arrivals. Core inflation was said to be largely stable and contained. Inflation expectations were showing a moderating trend in the country.
Mint
06-08-2025
- Business
- Mint
RBI MPC Meeting 2025 LIVE: RBI Governor Sanjay Malhotra-led MPC likely to keep repo rate steady, maintain policy stance
RBI MPC Meeting 2025 LIVE: The Reserve Bank of India (RBI) is set to announce its third bi-monthly monetary policy of FY26 today, 6 August 2025. The Monetary Policy Committee (MPC), headed by the RBI Governor Sanjay Malhotra, met from June 4 to June 6, and the repo rate decision will be announced later today. RBI Policy Expectations The RBI is expected to keep the repo rate unchanged at 5.50%, having already frontloaded easing through both a rate cut and a 100 bps CRR reduction earlier this year. The policy stance is also expected to remain 'Neutral' with a dovish bias. While the retail inflation is well contained, the underlying risks are still bubbling with the lingering global trade jitters. The RBI Governor's commentary on growth and the impact of global macroeconomic situation will be watched. In the June RBI policy, the central bank's MPC surprised with a bumper 50 basis points (bps) cut in the repo rate to 5.50% from 6%. The MPC changed the policy stance to 'Neutral' from 'Accommodative', and also slashed the Cash Reserve Ratio (CRR) by 100 bps to 3% from 4% earlier. Stay tuned to our RBI MPC Meeting LIVE Blog for the latest updates: Follow updates here: 06 Aug 2025, 06:17 AM IST RBI MPC Meeting LIVE: The Reserve Bank of India (RBI) is set to announce its third bi-monthly monetary policy of FY26 today, 6 August 2025. The Monetary Policy Committee (MPC), headed by the RBI Governor Sanjay Malhotra, met from June 4 to June 6, and the repo rate decision will be announced later today.
