RBI repo rate cut highlights (Feb 7): Global uncertainties not good for growth, imported inflation a worry, says RBI Governor

RBI cut repo rate by 25bps after keeping it unchanged for two years, while keeping the stance "unchanged". Today's policy reflects a balanced approach of focusing towards supporting economic growth, managing inflation and protecting financial stability. Rate cut amidst global uncertainty and depreciating pressure on INR, suggest RBI prioritising growth as inflation is aligning towards their target. - Kaustubh Gupta, Co-Head Fixed Income, Aditya Birla Sun Life AMC Ltd

The chart below is on the assumption that original tenure of the loan is 20 years; EMI amount remains unchanged; original interest rate is 9% and revised is 8.75 percent.

“The Reserve Bank of India's (RBI) decision to lower the repo rate to 6.25% for the first time in five years is a strategic move that is expected to significantly benefit various sectors, including the real estate sector. The cut in rates will not only provide a boost in housing sales by offering lower interest rates on new home loans and existing floating-rate home loans but is anticipated to enhance liquidity in the market, enabling developers to expedite the completion of ongoing projects and launch new projects. This measure is particularly crucial for the premium, mid-income and affordable housing segments, where demand is steadily rising.

Overall, this decision will improve confidence among investors and buyers, as well as align with the broader goal of making housing accessible to a larger segment of the population.”

- Reeza Sebastian Karimpanal, executive president - residential business at Embassy Group.

The markets were disappointed by RBI status quo on stance, as expectations were of stance change to “accommodative”. The markets sold off 3-4 bps immediately post announcement of policy decision. 10Y yield, which dropped to 6.645% is currently trading at 6.69-6.70%. This is likely due to adjustment of long positions as some of market expectations were belied. RBI has already announced Open market operations (OMO) purchase of Rs60,000cr, out of which Rs.20000cr has already been conducted. More OMOs are likely post this, as governor said that RBI is likely to continue to provide durable liquidity to reduce overall systemic liquidity deficit. We remain cautiously optimistic on markets, and expect another 25bps rate cut, likely in next policy, as inflation is likely to trend towards 4% target in coming months. 10Y yield is likely to trade in 6.55%-6.75% range in near term.- Avnish Jain, Head – Fixed Income at Canara Robeco Mutual Fund

“The RBI’s decision to cut the Repo Rate by 25 bps to 6.25% while maintaining neutral stance to deal with external volatility is a timely and welcome step that will help sustain economic growth and momentum. By aligning monetary policy with the Union Budget’s investment and growth focus, the RBI has reaffirmed confidence in India’s financial system and long-term economic resilience.

With borrowing costs set to ease, MSMEs, rural businesses, and semi-urban borrowers stand to benefit the most. The macroeconomic outlook, coupled with favourable growth-inflation dynamics and a well-balanced mix of fiscal and monetary policies are aligning for pro-growth stance, creating an ideal environment for accelerated credit growth and vibrant business momentum in the economy and banking space, especially for banks like ours, with a clear focus on serving the Middle Income Group (MIG) segment with emphasis on rural and semi-urban areas (SURU)."-Sarvjit Singh Samra, MD & CEO of Capital Small Finance Bank

India's central bank governor on Friday cautioned lenders against rising instances of frauds in digital payments and said that the regulator will launch secure website domain names to curb such fraudulent practices.

"Increased instances of fraud in digital payments are a significant concern," Reserve Bank of India (RBI) Governor Sanjay Malhotra, who is an engineer from the Indian Institute of Technology Kanpur, said while announcing the policy decision.

As Indian banks and consumers adopt new technology, risks of cyber attacks, digital frauds, data breaches and operational failures have increased, with the RBI repeatedly cautioning lenders about growing cyber security risks.

The proposed Liquidity Coverage Ratio (LCR) as well as project financing norms will get deferred by a year, and are not to be implemented before March 31, 2026, Reserve Bank of India’s (RBI) Governor Sanjay Malhotra said on February 7.

The Governor added that RBI does not think March 2026 is sufficient enough time for the implementation of these guidelines, adding that the regulator does not want to cause disruption and will ensure a smooth transition. Read more

The new RBI Governor and the MPC delivered the widely accepted 25bps policy rate cut with policy stance as neutral leaving room for it to take further actions in its next meeting. The MPC would have got comfort from the expectation of a moderating food inflation and under check core inflation giving an inflation estimate for FY26 at 4.2%. It has delivered the required monetary policy support to the economy and this combined with the consumption boost from the tax relief announced in the budget should give momentum to demand and pushing the FY26 growth rate to the higher end of the 6.3% to 6.8% growth range anticipated in the Economic Survey. - Ranen Banerjee, Partner and Leader Economic Advisory, PwC India

The stock markets moved marginally higher after the RBI Governor announced a repo rate cut following the Monetary Policy Committee (MPC) meeting today. The Nifty was trading at 23,576, about 11 points lower. Here are the key takeaways for equity markets. (Read Here)

No change in RBI’s thinking on crypto. It will not change based on what some country is doing: RBI DG Rabi Sankar

The Reserve Bank of India (RBI) has announced plans to roll out new guidelines specifically targeting the conduct of banks in relation to the mis-selling of financial products, according to RBI Deputy Governor M Rajeshwar Rao. (Read More)

"The Reserve Bank of India’s decision to reduce the repo rate by 25 basis points to 6.25% while continuing its neutral stance is a welcome move that will significantly boost the economy. The Monetary Policy Committee’s unanimous decision reflects its focus on maintaining a durable alignment of inflation with the target while supporting growth. It complements the government's fiscal policy, tax reliefs, and investment-driven measures announced in the recent Union Budget. Today's decision will also have a large impact on housing demand in the country. With control of inflation, we expect more cuts in the upcoming meetings, further boosting demand, especially in mid-segment housing." - Ashish Puravankara, MD, Puravankara Group

Global uncertainties are our 'higher worries'. It is because it has direct impact on growth. Global uncertainties are underlying cause for appreciation of dollar.

• Latest rupee exchange rate was accounted for in our inflation projections
• GDP forecast has also taken into account the fall in rupee
• On inflation, Governor says that RBI likes to be on top of everything.
• He also says that overlap between expected credit loss rules and project finance rules being reviewed.

• Project finance circular has also been deferred by a year
• DG Rao: RBI to come up with guidelines for conduct of banks, with respect to mis-selling of products

• LCR norms not to be implemented before March 31, 2026
• On LCR norms we will give sufficient time
• 31/3/2025 is not giving sufficient time for implementation of LCR

• 'It is endeavour of RBI to provide liquidity as much is required,' says Guv Malhotra
• 'Always watchful, will be nimble on providing liquidity,' says RBI Guv Malhotra
• RBI act has given us clear mandate. Our primary objective is inflation, price stability, keeping in view of growth objective. So we will continue to focus on that to meet these objective.

• The Reserve Bank of India’s 25 basis point repo rate cut marks a pivotal shift, deftly aligning monetary policy with the government’s fiscal strategies to reignite consumption. This decisive action comes at a critical juncture, addressing the challenges of decelerating GDP growth, dampened urban consumption, and stagnant private capital expenditure. By easing the cost of capital, the RBI is injecting vital momentum into the economic engine, setting the stage for a resurgence in spending and investment across the board.
• The rate cut – the first in nearly 5 years – sends a clear signal that a cohesive policy framework is in play, prioritizing growth while keeping an eye on risks. This move underscores the RBI’s confidence in maintaining inflation within its target range, reflecting a balanced approach to fostering growth without compromising price stability.
• For the real estate sector, the implications are profound and far-reaching. We anticipate this rate cut to be a catalyst, igniting homebuyer sentiment, enhancing affordability, and potentially unleashing a new wave of demand in the housing market. While 2024 was the best year ever in terms of sales and market activity, rising prices were beginning to have a lagging effect on market momentum, as evidenced by a decline in Q4 2024 sales numbers. The rate cut, coupled with budget tax benefits favouring mid-income buyers, will provide additional support to homebuyers and help sustain market buoyancy.
• The resilience of India’s residential real estate sector has been remarkable. Despite economic headwinds, 2024 saw residential sales soar to unprecedented heights, surpassing the 3-lakh unit milestone. With this rate cut serving as a tailwind to the existing demand momentum, we project 2025 to be a landmark year. Sales could well eclipse 2024 levels, setting new records and redefining the market’s potential.
• As we look ahead, the outlook for both homebuyers and investors appear increasingly promising, with this move potentially ushering in a new era of opportunity in residential real estate. - Dr Samantak Das, Chief Economist and Head – Research and REIS, India, JLL

• The RBI’s focus on maintaining stable inflation while promoting growth is a welcome move, and in line with the efforts of the government. The 25bps cut in repo rate, along with the announcements in the Budget towards boosting consumption, will help increase economic activity and direct investments towards the real estate sector especially in the affordable and mid-income housing. Making borrowing cheaper will not only help homebuyers, both new and old, but also provide liquidity to the developers.
• According to PropEquity, the supply of homes in the affordable and mid-income category (priced Rs 1 crore and below) across top 9 cities has dipped by 36% in the last two year and 30% in the last one year in 2024 with Hyderabad and NCR witnessing drastic fall in supply in this category. - Samir Jasuja, Founder and CEO of PropEquity

Bank Nifty gave up the cautious gains of the early morning session to slip into losses. HDFC Bank stock fell as much as 1 percent from its intraday high, even as the RBI MPC cut repo rate as expected, but kept 'neutral' policy stance. (Read More)

The last time the RBI had reduced the rate was during the Covid times (May 2020) and thereafter, it was gradually raised to 6.5 per cent. Newly appointed Reserve Bank Governor Sanjay Malhotra chaired his first Monetary Policy Committee (MPC) meeting starting Wednesday. (Read More)

• Confederation of All India Traders (CAIT) Secretary General Praveen Khandelwal welcomed the Reserve Bank of India’s decision to reduce the repo rate by 25 basis points, calling it a pro-growth move that will lower borrowing costs for businesses and consumers. With inflation projected at 4.8% for FY 2025 and 4.2% for FY 2026, the move ensures a balance between economic growth and price stability.
• Khandelwal emphasized that lower EMIs on home and business loans will provide financial relief, boost disposable incomes, and enhance consumer spending. Increased liquidity in the market will encourage business investments and overall economic momentum.
• He further noted that the income tax exemption limit is increased to RS 12 lakh in the upcoming budget, would significantly enhance household savings. The additional savings would drive higher consumer spending, increased demand, and greater market liquidity, ultimately fueling economic growth and a potential market boom.

Shortly after the announcement by RBI Governor Sanjay Malhotra, SBI MD Ashwini Kumar Tiwari told CNBC-Awaaz that the bank will reduce the interest rates on housing loans and car loans. He also said that the policy is on expected lines.

Finally, after keeping it on hold for almost 2 years, RBI MPC decided to cut the policy rates by 25 bps in line with market expectations, while keeping stance at neutral. RBI has guided to ensure sufficient durable liquidity in the system and will take pro-active measures for the same. Rate cut along with assurance on liquidity should help in boosting the consumption and revive growth. Inflation target has been pegged at 4.2% and GDP Growth is pegged at 6.7% for FY2025-26. As policy was on expected line and no immediate measure for on liquidity front,10 years G-sec has reacted by moving 4~5 bps higher post the policy announcement. We continue to expect incremental 25 bps rate cut till June 2025. - Deepak Agrawal, CIO- Debt, Kotak Mahindra AMC

• RBI repo rate cut news live: The RBI has officially made a policy shift, cutting the benchmark repo rate by 25 basis points after two years. However, it has retained its neutral stance amid global uncertainties. This rate reduction is primarily driven by concerns over slowing economic growth, particularly weak urban consumption.
• For FY26, the RBI has projected GDP growth at 6.7%, a slight improvement from the 6.4% estimate for FY25. Additionally, the central bank has taken a more optimistic view of inflation, forecasting it at 4.2% for FY26—60 basis points lower than the 4.8% estimate for FY25. The governor’s speech indicates a more flexible approach to inflation targeting.
• While the RBI has reassured markets about liquidity conditions, no new measures have been introduced. It has also clarified that forex market interventions will be carefully calibrated, responding only to excessive and disruptive currency movements.
• We believe the RBI MPC has initiated a cautious rate-cutting cycle with limited visibility on future reductions. The continuation of a neutral stance suggests that policy adjustments will depend on evolving economic data and external developments. - Suman Chowdhury, Executive Director & Chief Economist, Acuité Ratings & Research

• The Reserve Bank of India’s decision to cut the repo rate by 25 basis points to 6.25% reflects its focus on supporting economic growth amid moderating inflation. The move is expected to reduce borrowing costs, potentially improving credit availability and boosting demand across sectors. Alongside this, the central bank’s liquidity infusion measures aim to ensure stable financial conditions. However, challenges such as the weakening rupee, which could increase import costs, and external economic uncertainties remain key factors to monitor. The RBI will likely continue balancing growth and stability in its future policy decisions.
• For the auto sector, the rate cut could have a positive impact by making vehicle loans more affordable, which may encourage consumer demand, particularly in the passenger and two-wheeler segments. Additionally, improved liquidity conditions could support credit flow to businesses, benefiting automakers and dealers. However, factors like higher import costs due to currency depreciation and potential inflationary pressures could influence pricing and profitability in the industry. Commercial vehicle sales, which are closely linked to broader economic activity, may see a gradual impact depending on infrastructure and industrial growth trends.
• Overall, the policy measures create an environment that could support demand recovery in the auto sector, but external factors such as inflation, currency movement, and consumer sentiment will play a crucial role in shaping the industry’s outlook in the coming months.

The repo rate cut, combined with the benefits from the revised tax slabs announced in the Union Budget 2025 for the new tax regime, is likely to boost loan eligibility and repayment capacity in the upcoming fiscal year. Since October 2019, banks have linked floating-rate retail loans, including home loans, to an external benchmark, which is repo rate for most banks. As a result, any changes to the repo rate directly affect the interest rates on these loans. When the repo rate is cut, borrowers benefit from lower interest rates, but when it is hiked, their interest burden increases. (Read More)

• RBI repo rate cut news live: Some banks are reluctant to on-lend in the uncollaterised call money market. Urge them to actively trade in the uncollaterised call money market to deepen the market.
• CD ratio for banking system at 80.8% as on Jan 31, similar to a month ago level.
• System level parameters for NBFCs too is strong
• Surge in digital frauds is a matter of concerns
• Proposed to extend two-factor authentication to offshore payments
• Urge Banks and NBFCs to improve preventive and detective mechanisms for cyber risks
• We propose to include long term contract in government securities. This will facilitate long term investors to manage their interest rate risk.
• Expanding the access of NDS-OM, platform to trade in G-sec secondary market, to non-bank brokers who are registered with SEBI.
• RBI to set up working group for trading settlement timing. The group shall submit its report by April 30

The Monetary Policy Committee (MPC) of the Reserve Bank of India on February 7 announced an interest rate cut of 25 basis points (bps) to 6.25 percent, giving a much-needed relief to homeowners. The RBI repo rate/interest rate is a crucial factor in determining home loan rates as an increase or decrease in the interest rate directly impacts their home loans. (Read More)

RBI repo rate cut news live: The Reserve Bank of India on February 7 said it expects the country's growth projection for FY26 at 6.7 percent. Real GDP growth for FY26 at 6.75%, Q1 at 6.7% Q2 7% Q3 & Q4 6.5 % each. The monetary policy committee also unanimously decided to reduce the policy rate by 25 bps to 6.25 percent from 6.5 percent and maintained its neutral stance. (Read More)

• RBI believes in market efficiencies, does not target any exchange rate or band. It is determined by market forces.
• Drainage of liquidity mainly attributed to advance tax payments

• Early corporate results for Q3 indicates mild recovery in manufacturing sector
• Business expectations remain upbeat and services continue remain good
• Rural demand trends upwards, urban demand is mixed
• Real GDP growth for FY26 at 6.75%, Q1 at 6.7% Q2 7% Q3 & Q4 6.5 % each
• Core inflation is expected to rise but remain moderate
• CPI inflation for FY25 projected at 4.8%

RBI repo rate cut news live: RBI Governor Sanjay Malhotra announces to slash repo rate by 25 bps

• The interest of economy demands financial stability
• We will continue to strengthen and rationalise the prudential framework
• There are tradeoff between stability and efficiency
• We will continue with the consultative process in the regulation making process
• Want to reassure all stakeholders that we will continue with the consultative process

• I will continue with the practice of detailed statement after the MPC
• Flexible inflation target has served the economy including the challenging periods
• Will refine the flexible inflation framework and develop more robust models

MPC resolutions impacts lives of all citizens of the country. Is of relevance to businesses, economists and all parties: RBI gov Malhotra

RBI repo rate 2025 new live: Governor Sanjay Malhotra's conference begins, focus on interest rate cut

RBI MPC Meeting Live Updates: Man of the moment, Governor Sanjay Malhotra, is likely to make a change in his approach. Unlike his predecessor Shaktikanta Das' hawkish stance, Guv Malhotra maybe more accommodative.

• RBI MPC Meeting Live Updates: The repo rate has a direct impact on the everyday lives of people, primarily through changes in overall interest rates. As mentioned earlier, the repo rate is the interest charged by the RBI when lending funds to commercial banks.
• When the RBI raises the repo rate, borrowing costs for commercial banks increase, making it more expensive for them to secure funds. To offset this, banks, in turn, raise their lending rates. As a result, when individuals take loans from these banks, they face higher interest rates, leading to increased repayment costs on borrowed funds.

RBI MPC Meeting Live Updates: A poll of economists and treasury heads across banks and market experts, hint that a brand new Monetary Policy Committee that will meet from February 4 - 7, led by Sanjay Malhotra,  the new governor, Reserve Bank of India may hand out a rate cut in the upcoming Monetary Policy of Reserve Bank of India. Being the first MPC under Malhotra, the expectation is that the repo rate cut or the benchmark lending rate fixed by the RBI could be reduced by 25 basis points (bps) from 6.5 percent to 6.25 percent in the upcoming MPC. The MPC will announce its decision on repo rate on February 7. (Read More)

RBI MPC Meeting Live Updates: So, how does the central bank calculate the repo rate? Well, first and foremost, the kye factor is the current status of economic condition prevailing in the country. Then the factors such as inflation or recessionary trends of the market guide the RBI to make decision regarding the repo rate and other benchmark rates.

• RBI MPC Meeting Live Updates:  The term "repo" stands for Repurchase Agreement or Repurchasing Option. The Reserve Bank of India (RBI) utilizes the repo rate as a key interest rate when providing funds to commercial banks, primarily to regulate inflation.
• As a monetary policy tool, the RBI adjusts the repo rate to influence liquidity in the economy. During periods of inflation, the central bank raises the repo rate, making it more expensive for commercial banks to borrow funds. The higher borrowing costs discourage banks from taking loans, thereby reducing the money supply in the market and helping curb inflation. Conversely, during an economic downturn or recession, the RBI lowers the repo rate to encourage lending, increase liquidity, and stimulate growth.

RBI MPC Meeting Live Updates: The Reserve Bank of India (RBI) is likely to announce a 25-basis-point cut in the repo rate on February 7, according to a Bank of Baroda report. The decision is attributed to easing inflation, which has remained a key focus of monetary policy. The report indicates that the RBI will assess prevailing macroeconomic and geopolitical conditions, determining that a 25-basis-point reduction is feasible. This move is expected to lower borrowing costs and boost economic growth. (Read More)

RBI MPC Meeting Live Updates: Indian rupee opens 11 paise up at 87.4688 against the US dollar ahead of Reserve Bank of India's monetary policy, as compared to 87.5788 at previous close against the greenback.

RBI MPC Meeting Live Updates: The rupee is expected to hover near a lifetime low at the open on February 7 with the Reserve Bank of India largely expected to cut interest rates to support a slowing economy. The one-month non-deliverable forward indicated that the rupee will barely change from 87.5775 the previous day and near the all-time low of 87.5825.

You can check all live updates here in our live coverage. If you are interested in watching the press conference by RBI Governor live, you can click on the live link on YouTube - https://www.youtube.com/live/BX0RYDl6xcM ad

RBI MPC Meeting Live Updates:  With a rate cut already priced in by the markets, investors will be closely watching for any additional steps by the RBI, such as liquidity measures, said Madhavi Arora, lead economist at Emkay Global Financial Services. She added that "stealth easing" through unconventional tools like liquidity and regulatory measures is expected to continue.

RBI MPC Meeting Live Updates: The governor is leading a nearly entirely new six-member monetary policy committee. Deputy Governor M Rajeshwar Rao has temporarily joined the MPC to replace Michael Patra, who retired last month. Additionally, three external members have been part of the committee since October.

• Indian shares are set to open higher on Friday, ahead of the Reserve Bank of India's (RBI) monetary policy decision, in which the central bank is widely expected to cut interest rates to support slowing economic growth.
• The Gift Nifty futures were trading at 23,717.5 as of 07:28 a.m. IST, indicating that the benchmark Nifty 50 will open above Thursday's close of 23,603.35.
• The Nifty 50 has risen about 0.5% so far this week but is down about 4.4% from the previous policy meeting on December 6, 2024, hurt by slowing growth and corporate earnings.
• The RBI is widely expected to deliver its first rate cut since May 2020 on Friday, a week after India's federal government cut personal income tax to boost consumption.
• The rate decision is due at 10:00 a.m. IST in Mumbai. (Reuters)

• 1990 Batch IAS Officer: Belongs to the Rajasthan cadre.
• Educational Background: Holds a degree in Computer Science Engineering from IIT-Kanpur.
• Advanced Studies: Earned a Master’s in Public Policy from Princeton University, USA.
• Professional Experience: Served as Secretary in the Department of Financial Services before joining the Department of Revenue.

• Repo Rate Cut Forecast: The MPC is expected to reduce the repo rate by 25 basis points at its February 7 meeting.
• Policy Stance & Liquidity Measures: Along with the rate cut, the RBI may shift to an accommodative stance.
• Additional liquidity measures, such as increasing the PMO purchase calendar, are likely.
• CRR Cut Not in Base Case: Despite calls for a successive CRR cut (a 50-bps cut would infuse INR 1.16 trillion), it is not our base case due to two key reasons:
• Government Spending Outlook:
• Revised estimates indicate a sharp rise in both non-committed revenue and capital expenditure between January and March, significantly higher than the April-December monthly average.
• A monthly capex run rate of INR 1.08 trillion is required to meet revised estimates (compared to INR 767 billion in April-December).
• Non-committed revenue expenditure needs a monthly run rate of INR 2.74 trillion (versus INR 1.93 trillion previously).
• If government spending accelerates as expected, it will naturally ease liquidity concerns, reducing the necessity for a CRR cut.
• RBI’s Approach to Liquidity Management:
• The RBI MPC is unlikely to question the revised estimates and expects an increase in government spending.
• A CRR cut is a strong tool for permanent liquidity infusion, and using it consecutively may be premature.
• Instead, the RBI is more likely to rely on topping up OMO (Open Market Operations) purchases, which is a simpler and preferred option.

RBI MPC Meeting Live Updates: The Reserve Bank of India’s (RBI) decision on January 27 to enhance liquidity has raised expectations of a rate cut in the upcoming February monetary policy committee (MPC) meeting, according to experts. Upasna Bhardwaj, chief economist at Kotak Mahindra Bank, noted that these liquidity-boosting measures further increase the likelihood of a repo rate reduction in February. (Read More)

RBI MPC Meeting Live Updates: An SBI Research report anticipates that the Reserve Bank of India (RBI) will reduce its policy rate by 75 basis points in the upcoming easing cycle, with back-to-back cuts expected in February and April 2025. The report suggests that the central bank will begin the cycle with a 25-basis-point rate cut in its February policy review. (Read More)

RBI MPC Meeting Live Updates: Goldman Sachs analysts anticipate a 25-basis-point cut in the central bank’s repo rate, citing the need to address rising global volatility. The international financial firm views the rate reduction as essential for economic stability. Commenting on the rupee’s decline, Goldman Sachs India Economist Santanu Sengupta described it as a "necessary macroeconomic correction."

RBI MPC Meeting Live Updates: The benchmark indices extended their decline for another session on February 6, as the Nifty 50 slipped 93 points amid investor caution ahead of the RBI MPC’s interest rate decision. Market sentiment leaned bearish, with 1,404 stocks witnessing a decline, while 1,164 advanced on the NSE. Further consolidation is likely, with the RBI policy outcome expected to guide the market’s next move. Here are some trading ideas for the near term. (Read here)

RBI MPC Meeting Live Updates: After slow growth in the second quarter of the current financial year and a lower first advance estimate, the Reserve Bank of India’s (RBI) GDP growth projections have become a crucial focus for the upcoming monetary policy. These projections are particularly important because, in its December 2024 policy, the RBI had already revised its GDP estimates downward. On December 6, the central bank lowered its GDP growth forecast for the current fiscal year to 6.6%, from 7.2%. It also adjusted its Q3FY25 estimate to 6.8% from 7.4% and for Q4FY25 to 7.2% from 7.4%. Additionally, for Q1FY26, the RBI revised its growth projection to 6.9% from 7.3%, and for the September quarter of FY26, it lowered the estimate to 7.3%. (Read More)

RBI MPC Meeting Live Updates: The Reserve Bank of India’s monetary policy and the RBI Governor’s subsequent commentary have always been significant, particularly over the last 36 meetings. Each time, the central bank chief has ensured that there is something of value for everyone. Today’s policy announcement will be no different. In fact, market participants—whether in equities, debt, currency, or banking—are expected to show even greater interest this time, for three main reasons. Read MC Analysis here

RBI MPC Meeting Live Updates: The rupee fell 15 paise to a record low of 87.58 against the US dollar on Thursday, as speculation over a potential RBI rate cut in the upcoming monetary policy meeting weighed on the currency. The local unit has depreciated over 2% this year, following a nearly 3% decline in the USD/INR pair in 2024, making it one of the worst-performing Asian currencies. On January 1, 2024, the rupee was at 83.21 against the dollar.

RBI MPC Meeting Live Updates: More than 70% of respondents in a Reuters poll anticipated that the RBI would lower its key repo rate by 25 basis points to 6.25% at the conclusion of its Feb. 5-7 meeting, while others expected rates to remain unchanged due to above-target inflation.

RBI MPC Meeting Live Updates: The Reserve Bank last cut the repo rate by 40 basis points to 4% in May 2020 to support the economy amid the Covid-19 pandemic and the ensuing lockdown.

RBI MPC Meeting Live Updates: With the Union Budget focused on reviving consumption to drive economic growth, many analysts believe the RBI may shift its policy rate stance. In her Budget speech on February 1, Finance Minister Nirmala Sitharaman announced a slower pace of fiscal consolidation in FY26, aiming to reduce the fiscal deficit to 4.4% of GDP from 4.8% in FY25RE. She also introduced income tax relief for middle-class households, which could provide a much-needed boost to consumption.

RBI MPC Meeting Live Updates: In December, Sanjay Malhotra assumed office as the 26th governor of the Reserve Bank of India, succeeding Shaktikanta Das for a three-year term.

RBI MPC Meeting Live Updates: Good morning and welcome to our live coverage of RBI MPC. The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) is set to announce its decision on benchmark interest rates today. In his first monetary policy review as Governor, Sanjay Malhotra is expected to lower interest rates to spur economic growth, which is projected to reach a four-year low. A seasoned bureaucrat and former revenue secretary in the Ministry of Finance, Malhotra has not made any public statements since his appointment, leaving his stance on inflation and currency policy uncertain.