RBI MPC Meeting Begins: Key Economic Signals for FY26

RBI MPC Meeting Announcement

The Reserve Bank of India has commenced its scheduled Monetary Policy Committee (MPC) meeting for April 2025. The three-day meeting will be held from April 7 to April 9, with the outcome, including decisions on interest rates, set to be announced on April 9 at 10:00 AM. These bi-monthly meetings are vital to the RBI's monetary policy framework and aim to align interest rates with current macroeconomic conditions.

Main News

This session represents the first monetary policy review for 2025–26. The central focus is to assess whether changes are needed to the repo rate amid indications of easing inflation and heightened global economic concerns.

In the previous meeting held in February 2025, the MPC, chaired by Governor Sanjay Malhotra, the repo rate has been cut by 25 basis points, bringing it down to 6.25 percent. This was the first rate revision over two years and marked the first cut since the policy adjustments made during the COVID-19 pandemic in May 2020.

What has happened in previous meeting

Interest Rate Adjustments from February 2025:

• Repo Rate: Reduced to 6.25 per cent
• Standing Deposit Facility (SDF): Maintained at 6.00 per cent
• Marginal Standing Facility (MSF) and Bank Rate: Set at 6.50 per cent
• Cash Reserve Ratio (CRR): Held unchanged at 4.00 per cent

Economic Projections by the RBI:

• Consumer Price Inflation (CPI):
  • FY25: 4.8 percent
  • FY26: 4.2 percent
• GDP Growth Forecast:
  • FY25: 6.6 percent
  • FY26: 6.7 percent

Governor Malhotra reiterated the RBI's commitment to a 'neutral' policy stance, offering the flexibility to adjust interest rates based on inflationary trends and economic growth. This neutral stance aims to achieve the dual objectives of price stability and sustainable growth.

Summary

The RBI's ongoing MPC meeting plays a key role in shaping the monetary direction for the financial year 2025–26. With the February rate cut already in effect and inflation showing signs of moderation, the policy announcement on April 9 is expected to reflect both domestic economic developments and global uncertainties. The decisions during this session will be broadcast live on the RBI's official YouTube channel.