RBI MPC Meeting 2025 LIVE Updates: RBI Cuts Repo Rate By 25 bps to 6%; RBI Governor Sanjay Malhotra Announced GDP Growth to 6.5%

The RBI’s Monetary Policy Committee (MPC) meeting commenced on April 7, 2025, with the policy announcement made on April 9, 2025, at 10:00 AM IST. The meeting occurs amidst global economic challenges, including the US tariff war and recession risks, alongside moderating inflation in India.

RBI MPC Meeting 2025 LIVE Updates

Repo Rate Cut: Sanjay Malhotra, governor of the Reserve Bank of India (RBI), declared that the repo rate will be lowered by 25 basis points to 6%, following a similar cut in February 2025. This move is expected to provide relief to borrowers and support economic growth amidst global challenges.

SDF and MSF rate: The bank rate and the marginal standing facility (MSF) rate will be raised to 6.25%, while the standing deposit facility (SDF) rate under the liquidity adjustment facility (LAF) will remain at 5.75%.

Change to Accommodative: The RBI has shifted its stance from neutral to accommodative, indicating a more supportive approach to economic growth. This change suggests the RBI is prepared to take further measures to stimulate the economy if needed.

GDP Growth Projection: The RBI revised its GDP growth forecast for FY25-26 due to external economic pressures. The RBI governor revised it to 6.5% from 6.7%. 

Quarterly projections are:

• Q1FY26: Cut to 6.5% from 6.7%
• Q2FY26: Cut to 6.7% from 7.0%
• Q3FY26: Cut to 6.6% from 6.5%
• Q4FY26: Cut to 6.3% from 6.5%

Inflation Outlook: India’s retail inflation is at a seven-month low of 3.61%, below the RBI’s target of 4%. This year’s fiscal year 2025–2026 is expected to see CPI inflation of 4%, with Q1FY26 at 3.6%, Q2 at 3.9%, Q3 at 3.8%, and Q4 a little higher at 4.4%. 

With a 4% inflation objective, there is now a chance to lower the repo rate to 5.50% within this cycle.

Securitisation of Stressed Assets: RBI to enable securitisation of stressed assets through a market-based mechanism. 

Co-lending Guidelines Extension: RBI announced co-lending guidelines to be extended to all regulated entities. Scope expanded beyond current bank-NBFC arrangements for priority sector loans. 

Gold Loans and Non-Fund Based Entities: Comprehensive guidelines to be issued for loans against gold where it will cover both banks and NBFCs. Regulations to be extended to non-fund-based entities. 

UPI Transaction Limits: According to the RBI MPC Meeting, NPCI is to be permitted to set transaction limits for UPI. 

Source: Times of India