RBI MPC Meeting February 2025, RBI Monetary Policy Committee (MPC) Highlights: The MPC revised the repo rate for the first time in two years, voting unanimously to cut it by 25 basis points from 6.50% to 6.25% in view of easing retail inflation and slowing growth. The rate cut comes even as the Rupee continues to reel to under pressure from global tariff wars. The MPC decided unanimously to reduce the policy repo rate to 6.25% at its meeting, which is the committee’s last one for FY25 and new Governor Sanjay Malhotra’s first after he assumed charge of RBI on December 11, 2024, held from February 5th to 7th. The MPC also decided unanimously to continue with the ‘neutral’ stance and to remain unambiguously focused on a durable alignment of inflation with the target, while supporting growth.
RBI MPC 2025 Highlights, RBI Monetary Policy Meeting Outcomes, RBI MPC Meeting February 2025 News & Highlights: Follow here for all the latest updates regarding expectations from Reserve Bank of India’s (RBI) Monetary Policy Committee meeting.
RBI MPC Meeting February 2025 Key Highlights & Outcomes:
Following are the highlights of the bi-monthly monetary policy announced by the Reserve Bank of India Governor Sanjay Malhotra on 7th February 2025:
Rate cut of 25 bps to 6.25% to boost growth.
GDP expected to grow at 6.7% in 2025-26, driven by consumption & investment.
Inflation projected at 4.2% for 2025-26, barring major shocks.
Global risks (geopolitics, trade policy, financial volatility) remain key concerns.
Neutral stance maintained to allow flexibility in response to changing conditions.
Other Adjustments: Standing Deposit Facility (SDF) rate: 6.00%
Marginal Standing Facility (MSF) rate & Bank Rate: 6.50%
India’s Economic Growth (2024-25):GDP Growth Estimate: 6.4% YoY, driven by private consumption recovery; (Quarterly estimates: Q1 – 6.7%, Q2 – 7.0%, Q3 & Q4 – 6.5% each)
Headline Inflation: Declined from 6.2% in Oct 2024 to lower levels in Nov-Dec 2024 due to falling food inflation
Projections for 2024-25:CPI Inflation: 4.8% (Q4: 4.4%); Projections for 2025-26:CPI Inflation: 4.2%