Reserve Bank of India Monetary Policy Committee Announcements: Key takeaways

Following the back-to-back rate cuts, the key policy rate eased to 6% providing relief to home, auto and corporate loan borrowers.

The Reserve Bank of India (RBI) on Wednesday slashed the key interest rate by 25 basis points (bps) for the second time in a row, to support a shuttering economy hit by reciprocal tariffs imposed by the US.

Following the back-to-back rate cuts, the key policy rate eased to 6 per cent providing relief to home, auto and corporate loan borrowers.

Here are the key takeaways from the RBI MPC announcements:

Key interest rate reduced by 25 basis points, repo rate now stands at 6%

RBI has lowered the GDP growth forecast to 6.5 per cent from earlier projection of 6.7 per cent due to global uncertainties.

RBI lowers FY26 inflation projection to 4 per cent from 4.2 pc projected earlier.

Rate-setting panel decides to change policy stance to 'accommodative' from 'neutral'.

RBI concerned about global economic outlook, which is fast-changing due to Trump tariffs. "...latest trade related measures exacerbated uncertainties clouding outlook across regions," the RBI Guv said during the announcement.

Forex reserve as of April 4 stood at $676 billion providing import cover of 11 months

The central bank expands scope of co-lending beyond priority sector loans

RBI proposes to allow NPCI to revise UPI transaction limit for person to merchant as per needs of economy.

"We are aiming for non-inflationary growth built on foundation of improved demand and sustained macroeconomic balance," the RBI Governor said

SDF (standing deposit facility) rate cut to 5.75%; Marginal Standing Facility (MSF) at 6.25%

With PTI inputs