BIZNAMA
The Reserve Bank of India (RBI) cut its policy repo rate by 25 basis points to six per cent, for the second straight time having cut its rate for the first time in five years back in February.
Announcing this in Mumbai today, the RBI Governor said that the six-member committee voted unanimously for the rate cut in the first meeting of the financial year. The MPC also changed the monetary policy stance from neutral to accommodative, signalling further reductions in the repo rate.
Consequently the standing deposit facility (SDF) rate will be set at 5.75 per cent, while the marginal standing facility (MSF) rate and the Bank Rate will be adjusted at 6.25 per cent.
While announcing the decisions, the RBI Governor said that MPC has also decided to slash the GDP growth forecast to 6.5 per cent in 2025-26 from the 6.7 per cent projected earlier. He added that retail inflation is expected to be 4 per cent in 2025-26. The MPC met on 7, 8 and 9 April.
https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=60177
https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=60176