The Reserve Bank of India (RBI) decided to keep the repo rate unchanged at 6.5 per cent for the 11th consecutive period, maintaining its neutral monetary policy stance. The decision, made by a 4:2 majority during the Monetary Policy Committee (MPC) meeting on Friday, also means that the Standing Deposit Facility (SDF) rate remains at 6.25 per cent, and the Marginal Standing Facility (MSF) rate, along with the Bank Rate, stays at 6.75 per cent.
Reflecting on India’s economic trajectory, the Governor disclosed a revised GDP growth projection for FY25.
Governor Shaktikanta Das said, “Real GDP growth for 2024-25, that is the current year, is now projected at 6.6 per cent, with Q3 at 6.8 per cent and Q4 at 7.2 per cent. Real GDP growth for the first quarter of 2025-26 is projected at 6.9 per cent, and the second quarter of 2025-26 at 7.3 per cent.”
In a related move, the RBI cut the Cash Reserve Ratio (CRR) by 50 basis points from 4.5 per cent to 4 per cent, which is expected to infuse Rs 1.15 lakh crore of liquidity into the banking system. At the same time, the RBI raised its inflation projection for FY25 from 4.5 per cent to 4.8 per cent.
The MPC also agreed to continue with a neutral stance, focusing on aligning inflation with the target. Das reiterated that the RBI’s mandate is to maintain price stability while supporting growth.