RBI MPC meeting 2025 highlights: RBI MPC cuts repo rate by 25 bps to 6.25%

RBI MPC meeting 2025 LIVE updates: The press conference on the RBI's monetary policy decision has concluded.

RBI MPC meeting 2025 LIVE updates: Ranen Banerjee, Partner and Leader, Economic Advisory, PwC India said, “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.”

RBI MPC meeting 2025 LIVE updates: RBI Deputy Governor T. Rabi Sankar said the RBI's views on crypto remain unchanged even if other countries like the US change their stance towards it.

RBI MPC meeting 2025 LIVE updates: RBI Governor Sanjay Malhotra said global uncertainties are a higher worry than day-to-day rupee fluctuation since those uncertainties affect growth directly.

RBI MPC meeting 2025 LIVE updates: RBI Governor Sanjay Malhotra said the RBI is focussing on growth, stating inflation is down and will continue to go down.

RBI MPC meeting 2025 LIVE updates: RBI Governor Sanjay Malhotra said India can achieve 7% GDP growth rate.

RBI MPC meeting 2025 LIVE updates: The press conference has started for the RBI monetary policy

RBI MPC meeting 2025 LIVE updates: Naveen Kulkarni, Chief Investment Officer, Axis Securities PMS said, "The RBI reversed the interest rate cycle by announcing a rate cut of 25bps, after holding rates steady for a couple of years. This was largely anticipated post the liquidity boosting measures announced in late Jan'25. The GDP growth for FY25 has been revised downwards to 6.4% vs 6.6% previously. For FY26, GDP growth is expected to hold up at 6.7%. Inflation estimates for FY26 are expected to be closer to the regulator’s tolerance limit. We could expect another rate cut of 25bps in the upcoming meetings.

The credit growth momentum for banks has evidently slowed down either owing to a cautious approach towards lending amidst asset quality concerns in the unsecured segment or softening demand. However, we see positive levers for supporting credit growth revival from the recent budget announcements. The rate cut can be viewed as a positive for lenders having a higher share of fixed rate portfolio, especially credit card issuers, vehicle financiers and gold financiers. On the other hand, banks with a higher share of floating-rate loans would continue to face near-term headwinds on margins. We would remain watchful of asset quality trends for banks, especially those with meaningful exposure to unsecured lending, wherein recovery is still a couple of quarters away. Currently, we prefer Bajaj Finance, Cholamandalam Inv & Finance and Shriram Finance as they would be key beneficiaries in the rate cut cycle."

RBI MPC meeting 2025 LIVE updates: Sujan Hajra, Chief Economist & Executive Director, Anand Rathi Group said the following:

• "In line with our expectations, the RBI, in its first MPC meeting of 2025, started easing monetary policy as the MPC unanimously decided to reduce the policy rate by 25 bps from 6.5% to 6.25%. The decision to cut the rate came from the RBI after nearly five years. While delivering the rate cut, the MPC highlighted that its policy stance will continue to remain neutral.

• The Standing Deposit Facility (SDF) rate was also reduced by 25 bps to 6% from 6.25%.

• Given that headline inflation is gradually moving towards the RBI's target range, with easing pressure from food prices, the RBI projected headline inflation for FY25 at 4.8%, while the projection for FY26 remains unchanged at 4.2%.

• While the RBI maintained its FY25 growth forecast at 6.4%, it revised India's FY26 GDP growth projection from 6.6% to 6.7%.

• Given the prevailing economic policy uncertainty amid trade tensions, an upside risk to inflation remains. Therefore, the RBI stated that it will continue to maintain a neutral stance while keeping a close watch on the global environment.

Our View

In line with our expectations, the RBI cut the policy rate by 25 bps to support domestic growth, as headline inflation is gradually moving towards its target range. Although the global environment remains volatile, the RBI made a prudent decision to lower the policy rate, considering domestic factors while keeping an eye on global developments.

Recently, the government has also initiated pro-consumption measures, such as tax relief in the FY26 budget, which will positively impact growth. Now, with the RBI joining hands with the central government through its monetary policy to ease borrowing costs, further support to growth is expected. Keeping these positive measures in mind, we continue to remain firm on our 7% GDP growth forecast for FY25."

RBI MPC meeting 2025 LIVE updates: Jigar Trivedi, Senior Analyst at Reliance Securities said, “As anticipated, the Reserve Bank of India lowered its key repo rate by 25 bps to 6.25%, marking the first rate cut since May 2020 during the February meeting. This move comes amid a recent slowdown in economic growth and global trade uncertainty, as widely expected. The decision brings borrowing costs to their lowest level since January 2023. It was Governor Sanjay Malhotra's first monetary policy review since taking charge as the 26th RBI governor last December. The fundamentals of the domestic economy remain robust, with a strong external account, calibrated fiscal consolidation and stable private consumption. Regarding economic outlook, the GDP is projected to reach 6.7% for FY 2026. Meanwhile, the central bank maintained its inflation forecast at 4.2% with projections of 4.5% for Q1, 4.0% for Q2, and 3.8% for Q3. The food inflation is expected to soften on the back of new crop arrival. Regarding currency movement, the new Governor made it clear that its decided by the market force and no specific band is targeted, which also means the RBI may not intervene in the currency market as expected. The rupee may stay volatile and the undertone is bullish in the USDINR pair. Going ahead, 88.00 is a resistance for a short term.”

RBI MPC meeting 2025 LIVE updates: Boman Irani, President, of the Confederation of Real Estate Developers' Associations of India (CREDAI) said, "The Union Budget 2025 reaffirms India's growth trajectory towards a 'Viksit Bharat' with a strong focus on inclusive development and economic expansion. Exemption of income tax payable for income up to ₹12 lakh, coupled with increasing the TDS threshold on rent from ₹2.4 lakh to ₹6 lakh, will significantly enhance disposable income, boosting housing demand and overall consumption. This budget supports economic stability and positive market sentiment; however, the sector was expecting additional measures, such as further incentives to boost demand for affordable housing, a higher threshold for home loan interest exemptions which has remained stagnant for a long time and a revision in the definition of affordable housing based on a minimum dwelling unit size instead of a uniform ₹45 lakh value across the country. These steps could have provided an added stimulus to the market and improved housing affordability.

CREDAI welcomes the announcement of allocating the ₹1 lakh crore Urban Challenge Fund, which will enable better urban planning, while the new UDAN scheme will enhance regional connectivity and catalyse real estate and infrastructure growth. The ₹15,000 crore SWAMIH Fund 2 is a crucial step towards expediting stalled housing projects, ensuring homebuyers' interests are safeguarded. Additionally, allowing benefits for two self-occupied properties without conditions will further boost homeownership.

The sector remains optimistic that the various announcements made by the Finance Minister today will be followed by a Repo rate cut later this month, further strengthening homebuyer sentiment and investment in real estate. With these progressive measures, India remains firmly on track to become the world’s third-largest economy by 2027.”

RBI MPC meeting 2025 LIVE updates: The stock market plunged after the RBI's rate cut announcement. The Sensex was down 192.14 points or 0.25%, reaching 77,866.02, while the Nifty was down 73.05 points or 0.31%, reaching 23,530.30.

RBI MPC meeting 2025 LIVE updates: RBI Governor Sanjay Malhotra has concluded his monetary policy speech.

RBI MPC meeting 2025 LIVE updates: RBI Governor Sanjay Malhotra said, “the financial or the system level, financial parameters for the scheduled commercial banks continue to be healthy. The Credit deposit ratio for the banking system at the end of January 2025 was at 80.8% broadly similar to that on 30th September 2024. Bank liquidity buffers are sufficient, though the net interest margin moderated return on assets and return on equity are robust. The system level parameters, or NBFCs too, are very healthy.”

RBI MPC meeting 2025 LIVE updates: RBI Governor Sanjay Malhotra announced that the RBI estimates real GDP growth for the next year to be at about 6.75%. For the first quarter, it is estimated to be 6.7%, for the second quarter, the estimate is 7%, and it is 6.5% for both the third quarter and fourth quarter.

RBI MPC meeting 2025 LIVE updates: The RBI MPC has cut the policy repo rate by 25 bps to 6.25%.

RBI MPC meeting 2025 LIVE updates: Inflation targeting has served the Indian economy very well, said RBI Governor Sanjay Malhotra.

“CPI has mostly stayed aligned with the target given under this framework, barring a few occasions of breaching the upper tolerance ban,” he added.

RBI MPC meeting 2025 LIVE updates: MPC resolutions impacts lives of all citizens of the country. Is of relevance to businesses, economists and all parties, RBI governor Sanjay Malhotra said.

RBI MPC meeting 2025 LIVE updates: RBI Governor Sanjay Malhotra ahs begun his monetary policy decision speech.

RBI MPC meeting 2025 LIVE updates :The RBI's monetary policy announcement will begin soon at 10:00 am IST. It can be watched live on the apex bank's official YouTube channel.

RBI MPC meeting 2025 LIVE updates: The RBI's monetary policy announcement will begin in 10 minutes at 10:00 am IST. It can be watched live on the apex bank's official YouTube channel.

RBI MPC meeting 2025 LIVE updates: Sandeep Bagla, CEO of TRUST Mutual Fund said, "The government through the FY26 budget has continued the path of fiscal prudence, thereby providing macro and financial stability and addressed the issue of demand led growth concerns by reducing tax rates such that there is more money in the hands of the middle class for consumption. We think the RBI has space of policy easing by 50-75 bps interest rate cuts in this cycle. We think the MPC will go ahead and start cutting Repo Rate by 25 bps in tomorrow’s policy as real rates are currently very high leading to growth slowdown and inflation is trending back to the MPC target of 4%. The key challenges in front of the MPC is the Global environment, especially the potential measures by United States under Trump administration that is turning out to be broadly inflationary. Capital outflows in an environment of global USD strengthening is likely to lead to a measured depreciation of INR against the USD- most currencies have weakened against the USD. Moreover, countries like China may use currency as a tool to counter any punitive US tariffs.

The reduction in interest rates is likely to bring yields lower across the Government securities as well as the corporate bond curve. The recently announced liquidity measures will also be bond market supportive."

RBI MPC meeting 2025 LIVE updates: Pradeep Aggarwal, Founder & Chairman at Signature Global (India) Ltd said, "A potential repo rate cut by the RBI in its upcoming MPC meeting could be a pivotal move in shaping India's economic momentum, particularly as the Union Budget 2025 is expected to drive consumption and investment. In the real estate sector, such a policy shift could lead to more affordable home loans, improving housing affordability and stimulating demand—especially in the mid and premium segments.

Moreover, the recent 50-basis-point reduction in the Cash Reserve Ratio (CRR) has already injected significant liquidity into the banking system, setting the stage for improved credit flow. If complemented by a rate cut, this could accelerate capital deployment in infrastructure and urban development, further boosting real estate growth. Given India’s rapid urbanization and rising aspirations for homeownership, a proactive monetary policy can serve as a catalyst for long-term economic resilience and sustained real estate expansion."

RBI MPC meeting 2025 LIVE updates: The RBI's monetary policy announcement will begin in 15 minutes at 10:00 am IST. It can be watched live on the apex bank's official YouTube channel.

RBI MPC meeting 2025 LIVE updates: Bajaj Broking Research expects the following from the monetary policy:

"RBI likely to cut repo rate by 25 basis points for the first time in almost five years after domestic rate-setting panel has kept the policy repo rate unchanged for the last 11 consecutive meetings after raising it by 250 bps between May 2022 and February 2023.

Steps to revive sluggish economic growth: The Union Budget prioritizes consumption and fiscal discipline, leaving room for the central bank to stimulate growth. With GDP growth slowing to a seven-quarter low of 5.4% in Q2 FY25, a rate cut seems imminent.

Liquidity Boosts Hopes: RBI's recent liquidity measures aim to stabilize the financial system, reinforcing expectations of monetary easing.

Inflation: CPI inflation for FY26 is projected at 4%, with January likely below 4.5%. December inflation eased to 5.22%, marking four consecutive months above 5%. Food inflation dropped to 8.4% from 9% in November.

MPC Stance Steady: The MPC shifted to a neutral stance in October, providing flexibility in policy decisions. Economists expect no change in this stance in February, with a shallow rate cut cycle anticipated.

CRR Cut Unlikely: While the RBI ensures sufficient liquidity, a CRR cut is unlikely in the next policy announcement, as the central bank maintains a supportive financial environment."