RBI to announce 6th & last bi-monthly monetary policy decision of FY25 today

The Reserve Bank of India (RBI) will announce today the decision of its Monetary Policy Committee (MPC) meeting amid widespread expectations of a 25 basis points reduction in interest rate after a gap of nearly five years. New RBI Governor Sanjay Malhotra, who chaired his first MPC meeting, is expected to announce the decision of the six-member panel this morning. The three-day meeting of the MPC started on Wednesday.

RBI had last reduced the repo rate by 40 basis points to 4 per cent in May 2020 to help the economy tide over the crisis following the outbreak of the Covid pandemic



and subsequent lockdown. But in May 2022 the central bank started a rate hike cycle in view of the Russia-Ukraine war and paused it only in May 2023. 

Several research reports and industry and business chambers expressed views that there are widespread expectations of a 25-basis point cut in the policy rate to 6.25 per cent. The Associated Chambers of Commerce and Industry of India, ASSOCHAM yesterday said, the rate cut can enhance liquidity in the banking system and will also revive consumption and fiscal discipline.