The RBI cut the Policy repo rate by 25 basis points to 5.25% today. As a result, the standing deposit facility (SDF) rate will be set at 5 %. The marginal standing facility (MSF) rate and the Bank Rate will be adjusted to 5.5 %. The six-member committee voted for the rate cut.
RBI reduce repo rate by 25 bps
Speaking in Mumbai, RBI Governor Sanjay Malhotra said that the MPC has decided to keep a neutral stance. He noted that the company has raised GDP growth estimates for FY 2025-26 to 7.3% from 6.8% previously.
According to the RBI, this is an increase of about half a percent from earlier projections. It also lowered the CPI inflation forecast for FY 2025-26 to 2% from 2.6%. Mr. Malhotra mentioned that the MPC has observed that headline inflation has eased significantly and is expected to soften further.
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