RBI Monetary Policy Meeting February 2025 Live Updates: The Reserve Bank of India (RBI) on Friday reduced the repo rate by 25 basis points to 6.25%, marking the first rate cut in nearly five years. This is the first reduction since May 2020, during the Covid pandemic.
Between May 2020 and April 2022, the RBI kept the repo rate steady at 4%. However, since April 2022, the central bank has been gradually increasing the policy rate, which reached 6.5% by February 2023, before maintaining it at that level for two years until now.
In addition to the repo rate cut, the RBI also reduced the SDF and MSF by 25 basis points, bringing them to 6% and 6.5%, respectively. The bank rate has also been cut to 6.5%.
While presenting the final monetary policy of FY25, RBI Governor Sanjay Malhotra noted, “The Indian economy remains resilient, despite global challenges. Food inflation is expected to ease with the arrival of new crops.”
Governor Malhotra also revealed that the RBI’s rate-setting panel has projected India’s FY26 GDP growth at approximately 6.7%. The inflation target for FY26 has been maintained at 4.2%.