RBI MPC meeting: Repo rate cut by 50 bps, other key takeaways

Indian economy growing at a very fast pace, we are making all efforts to grow even faster in our vision of Viksit Bharat, said RBI Governor.

Reserve Bank of India (RBI) Governor Sanjay Malhotra.

Credit: Reuters Photo

RBI governor Sanjay Malhotra-led Monetary Policy Committee (MPC) announced a 50 basis points cut in repo rate today to 5.5 per cent from 6 per cent.

Here are the key highlights of the meeting:

Indian economy presents strength, stability and opportunity amid global concerns

Indian economy growing at a very fast pace, we are making all efforts to grow even faster in our vision of Viksit Bharat

MPC decides to reduce policy rate by 50 basis points to 5.5 pc

Inflation outlook for FY26 revised downwards to 3.7 pc, from 4 pc

After reducing repo by 100 bps in quick succession, monetary policy left with limited space to support growth

Govt's continued thrust on capex should help revive investment activity: RBI Governor Malhotra

RBI retains GDP growth forecast for current fiscal at 6.5 pc, geopolitical tensions and weather vagaries pose headwinds

RBI Guv says from now MPC will carefully assess income data, evolving outlook to chart out future policy

RBI retains GDP growth forecast for current fiscal at 6.5 pc, geopolitical tensions and weather vagaries pose headwinds

Current account deficit (CAD) for FY'25 to remain low; FY26 within sustainable level

Core inflation remains largely stable, benign prices expected for major items going forward

Core inflation largely remains stable, contained; need to be watchful of weather- related uncertainties, tariff concerns

India continues to remain attractive destination despite moderation in net FDI

Forex reserves at USD 691.5 billion, sufficient to fund more than 11 months of import needs, external sector remains resilient 

There is stability in the front of price, financials and oil, says RBI Governor Sanjay Malhotra

MPC felt frontloading of rate cut will boost growth

'Comfortable' surplus liquidity situation has reinforced faster rate transmission, says RBI Governor

RBI reduces cash reserve ratio by 100 bps, will release Rs 2.5 lakh crore of bank funds

RBI would continue to monitor evolving liquidity situation and financial market condition and take proactive measures, says Guv

Indian economy progressing well, broadly on expected lines despite global uncertainties

With PTI inputs