On April 7, 2025, the Reserve Bank of India (RBI) began its three-day bi-monthly monetary policy review meeting, with a key focus on deciding the benchmark repo rate. The meeting is led by RBI Governor Sanjay Malhotra and includes six members of the Monetary Policy Committee (MPC). The final decision is scheduled to be announced on April 9, 2025.
This session is significant as it marks the first MPC meeting of the new financial year and follows the Union Budget 2025, which aimed to boost consumer spending through changes in income tax slabs.
In February 2025, the MPC cut the repo rate by 25 basis points, bringing it to 6.25%—its first rate cut in nearly three years (since May 2020).
Experts predict another 25 bps rate cut in this meeting as a response to global economic uncertainties, including the US announcement of reciprocal tariffs, which could impact trade and inflation.
