New Delhi
The meeting of the Reserve Bank of India (RBI) Monetary Policy Committee (MPC) has ended today (7 February 2025) and the new RBI Governor Sanjay Malhotra announced the committee’s decision at 10 am today. This meeting, lasted for three days, announced the reduction in repo rate as expected. After Covid-19 in 2020, the RBI repo rate has been cut by 25bps today. RBI has reduced the policy rate repo from 0.25 percent to 6.25 percent.
Earlier in May, 2020, the repo rate was reduced by 0.40 percent to four percent at the time of Kovid-19 epidemic. Then the RBI started increasing the rates in May 2022 to deal with the risks of Russia-Ukraine War and the series stopped in February 2023. The repo rate remains stable at 6.50 percent for two years. Governor of RBI, Sanjay Malhotra, while giving information about the decision taken in the three -day meeting of the Monetary Policy Committee (MPC), said that the six -member committee has decided to reduce the repo rate from 0.25 percent to 6.25 percent with consensus.
Governor Sanjay Malhotra said that the meeting was discussed about the economy development in the meeting. The governor further said that we have decided in the meeting that the repo rate is being reduced. Now the repo rate is being reduced from 6.50 to 6.25. After the repo rate reduction, the EMI of your loan will be reduced.
The governor said that global economy is going through challenges. Also, inflation is also increasing globally. At the same time, the Federal Reserve Bank has cut the rate several times. Along with this, the political tension is also increasing. Due to which economy around the world is being affected. The Indian rupee is currently in pressure. There are many big challenges in front of the Reserve Bank.
India’s GDP growth estimates
The Reserve Bank of India has expected the country’s growth rate of 6.7 percent for FY 2026. Real GDP growth for FY 2026 is estimated to be 6.75%, April-June 2025 quarter, 7%in the July-September 2025 quarter. At the same time, it is estimated to be 6.5-6.5% in October-December 2025 and January-March 2026 quarter.
The goal of reducing inflation further
Governor Sanjay Malhotra said that this financial year 4.8 percent inflation is expected to remain. At the same time, inflation rate will be reduced further. In December, there was a change in both retail inflation and wholesale inflation. Retail inflation is at 4 months low at 5.22%. At the same time, the wholesale inflation has increased to 2.37%. It was 1.89% in November. The governor said that the Reserve Bank said that investors are used by SEBI’s platform registered by SEBI to trading in government security in the secondary market.
