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The Reserve Bank of India (RBI) on Wednesday, April 9, released its first bi-monthly monetary policy statement for FY 2025-26.
RBI Governor Sanjay Malhotra announced that the Monetary Policy Committee (MPC) has reduced the repo rate by 25 bps to 6% and shifted its stance to ‘accommodative.’
In February, the six-member MPC cut the rate for the first time in five years to 6.25% and maintained a ‘neutral’ stance. Let’s look at five key takeaways from RBI MPC.
Governor Malhotra said that FY26 has begun on an 'anxious note' for the global economy amid emerging challenges with the US imposing a 26% reciprocal tariff on India.
For FY26, the RBI reduced its projected GDP growth to 6.5% from its previous forecast of 6.7% in February, citing trade and policy uncertainties.
Consumer Price Index (CPI) inflation is projected at 4% for FY26, factoring in a normal monsoon. The MPC said that inflation is currently below the target.
The governor announced six regulatory and fintech-related measures aimed at improving financial inclusion and market efficiency in India.
A repo rate cut makes borrowing cheaper and promotes consumer spending. It results in low-interest loans, making cars, houses, and education, among other things, more affordable.
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