The Reserve Bank of India reduced the Policy repo rate by 25 basis points to 5.25% today. Consequently, the standing deposit facility (SDF) rate will be set at 5 per cent, while the marginal standing facility (MSF) rate and the Bank Rate will be adjusted at 5.5 per cent. The six-member committee voted unanimously for the rate cut.
Speaking in Mumbai today, RBI Governor Sanjay Malhotra today said that the MPC has also decided to continue with the neutral stance. He informed that the RBI has raised GDP growth estimates for FY 2025-26 to 7.3% from 6.8% earlier.
According to RBI, this is up by about half a percent from RBI’s earlier projections. RBI has also reduced CPI inflation forecast for FY 2025-26 to 2% from 2.6% earlier. Mr. Malhotra informed that MPC has noted that the headline inflation has eased significantly and will further soften.
