RBI MPC Highlights | Repo rate reduced to 6%; GDP growth estimate lowered to 6.5%The RBI on Wednesday slashed key interest rate by 25 basis points, for the second time in a row, to support a shuttering economy hit by reciprocal tariffs imposed by the US. Following the rate cut, the key policy rate eased to 6% providing relief to home, auto and corporate loan borrowers. In its last policy in February, RBI had trimmed repo rate by 25 basis points to 6.25%. This rate came after previous rate reduction in May 2020. The last revision of rates happened in February 2023 when the policy rate was hiked by 25 basis points to 6.5%. The Monetary Policy Committee (MPC) unanimously decided to slash the policy rate by 25 basis points to 6.25%, RBI Governor Sanjay Malhotra said. RBI has lowered the GDP growth forecast to 6.5% from earlier projection of 6.7% due to global uncertainties.
Reserve Bank of India (RBI) Governor Sanjay Malhotra
Credit: Reuters Photo
RBI MPC LIVE | Trump's reciprocal tariffs kick in today
The RBI will be announcing its MPC policy on a day when the Trump tariffs kick in.
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RBI MPC LIVE | Here is what an industry expert has to say regarding the RBI MPC policy
An HSBC Global Research report said:"We expect the RBI to deliver a 25 bps repo rate cut in April, taking the repo rate to 6 per cent. We also expect it to discuss/implement steps that help sustain liquidity at surplus levels. We believe the RBI may lower its growth and inflation forecasts. Following the April rate cut, we expect two more rate cuts of 25bp each in the June and August meetings, taking the repo rate to 5.5 per cent, which is our estimate of neutral."
(PTI)
RBI MPC LIVE | Goldman Sachs too expects a 25 bps repo rate cut.
RBI MPC LIVE | Here is what Mr. Ashok Kapur, Chairman, Krishna Group and Krisumi Corporation, expects from today's announcement
In the upcoming Monetary Policy Review Meeting, the first MPC meeting of FY26, the Apex Bank is expected to further support the economy and borrowers by reducing the policy rate by 25 basis points, bringing the repo rate closer to 6%. This anticipated rate cut would not only inject more liquidity into the market but also stimulate borrowing and spending, leading to increased economic activity. The housing sector, in particular, stands to benefit significantly, as lower interest rates would further reduce home loan EMIs, making homeownership more affordable for a larger section of buyers. The expected policy rate cut is likely to sustain the strong sales momentum in the housing sector in the upcoming quarter.
RBI MPC LIVE | Amid easing domestic inflation and a supportive CPI inflation print, expectations of a rate cut may appear timely - Rohit Arora, CEO and co-founder, Biz2Credit and Biz2X
RBI MPC LIVE | Rupee plunges 30 paise to 86.56 against US dollar in early trade
The rupee lost further ground on the fourth straight session, declining sharply by 30 paise to 86.56 against the US dollar in early trade on Wednesday ahead of the Reserve Bank's monetary policy decisions.
Forex traders said that despite a steep fall in crude oil prices and a weak American currency, the looming worldwide trade war continued to stoke fears of global economic meltdown, fuelling withdrawal of foreign funds with the stock markets remaining shell-shocked.
At the interbank foreign exchange, the rupee opened at 86.52 and hit the low of 86.60 before strengthening a tad to 86.56 against the greenback in early deals, still sharply lower by 30 paise from the previous closing level.
(PTI)
RBI MPC LIVE | There are global disturbance at work, says RBI Guv Sanjay Malhotra
RBI MPC LIVE | RBI Guv speaks on Indian central bank's 90th anniversary
RBI MPC LIVE | Global economic outlook fast-changing, US tariffs have brought uncertainties, posing new risks for global growth, says RBI uv
RBI MPC LIVE | After detail assessment, MPC decides to reduce policy repo rate by 25 bps to 6%
MSF/Bank rate: 6.25%
policy stance to ‘accommodative’ from ‘neutral’.
RBI MPC LIVE | The new U.S. tariffs on India threaten the central bank's GDP growth estimate of 6.7% for 2025-26 and the government's economic survey forecast of 6.3%-6.8%.
RBI MPC LIVE | Trade frictions will impact domestic growth, RBI Guv says
RBI MPC LIVE | Slowdown in global growth could further soften commodity, crude prices
RBI MPC LIVE | Real GDP projected to grow 6.5%; prospects of agri sector bright; manufacturing showing signs of revival; services sector continues to be resilient, says Guv
RBI MPC LIVE | Consumption picking up on uptick in discriminatory spending
RBI MPC LIVE | Our stance provides policy rate guidance without any guidance on liquidity management, says governor
RBI MPC LIVE | SDF rate cut to 5.75%; MSF at 6.25%
RBI MPC LIVE | Fall in crude prices augers well for inflation outlook: Guv
RBI MPC LIVE | Investment activity has gained traction, expected to improve further on back of sustained capacity utilisation: RBI Guv
RBI MPC LIVE | What is an 'accommodative' stance?
An accommodative stance by the Reserve Bank of India (RBI) refers to a monetary policy approach aimed at boosting economic growth, usually by keeping interest rates low or injecting liquidity into the economy.In simpler terms: When the RBI takes an accommodative stance, it is saying: “We are open to lowering interest rates or keeping them low for now.” “We want to support borrowing, spending, and investment to stimulate the economy.”
Why would the RBI do this? An accommodative stance is typically adopted when:
Economic growth is slowing down
Inflation is under control or low
There’s a need to support job creation and credit flow
Tools used under this stance:
Reducing the repo rate (the rate at which banks borrow from the RBI)
Injecting liquidity into the banking system
Encouraging banks to lend more
RBI MPC LIVE | Merchandise exports will be weighed down by global uncertainties: RBI Guv
RBI MPC LIVE | Uncertainties about Rabi crops have abated considerably; 2nd advance estimates point to record wheat production: RBI Guv
RBI MPC LIVE | Forex reserve as of April 4 stood at $676 billion providing import cover of 11 months, says RBI governor
RBI MPC LIVE | System liquidity was in deficit in Jan, as result of slew of measures it tapered during Feb, March and turned in surplus: RBI Guv
RBI MPC LIVE | RBI committed to provide sufficient system liquidity, says Guv Sanjay Malhotra