RBI Monetary Policy Meeting: Major Takeaways

New Delhi, 9 April. 2025

The Reserve Bank of India’s (RBI) 54^th Monetary Policy Committee (MPC) meeting concluded on Wednesday, April 9, with the apex bank announcing yet another rate cut.

RBI Governor, Sanjay Malhotra, stated that the central bank’s concern is not solely inflation, but also the potential impact of US President Donald Trump’s tariffs on India’s economic growth.

In his policy address, Malhotra noted that elevated global uncertainty is presently exerting a dampening effect on investment and consumer spending. This is on both, the global scale and domestically. Specifically, trade tensions, increased tariffs, and uncertainties surrounding export-import dynamics have contributed to difficulties in accurately assessing the adverse impact on growth.

Key takeaways from the RBI MPC meeting, 2025:

1. Repo rate cut by 25-basis points, from 6.25% to 6%

RBI Governor Sanjay Malhotra announced a 25-basis point cut in the repo rate, effectively lowering it to 6 per cent. This is the second consecutive rate cut, with the last one in February also being a 25-basis point cut from 6.5 per cent.

2. Cut in India’s GDP growth projection

The RBI Governor further announced that the Reserve Bank of India has revised its forecast for India’s GDP growth in fiscal year 2026, lowering the projection to 6.5 per cent from the previously estimated 6.7 per cent.

3. Policy Stance changed from ‘neutral’ to ‘accommodative’

The RBI has shifted its monetary policy stance from neutral to accommodative, thereby adopting a more stimulating approach to support economic growth through lower interest rates.

Malhotra clarified, “In our context, the stance of monetary policy signals the intended direction of policy rates going forward. Going forward, absent any shocks, the MPC is considering only two options – status quo or a rate cut.

4. Cut in the Consumer Price Index (CPI) inflation projections

It is anticipated that the Consumer Price Index (CPI) inflation for the fiscal year 2026 will be approximately 4%. This predicts a normal monsoon season.

Read More: Global Markets Plunge After U.S. China Tariffs .