RBI MPC Meeting 2025: Repo Rate Reduced to 6%, GDP Growth Pegged at 6.5%

In a significant move aimed at bolstering economic growth, the Reserve Bank of India’s Monetary Policy Committee (MPC)on Monday announced a 25 basis point cut in the repo rate, bringing it down from 6.25% to 6%. This marks the second consecutive rate cut in the current fiscal and is expected to provide relief to borrowers, with EMIs likely to reduce across home, auto, and personal loans.

The decision comes amid a favorable macroeconomic backdrop, with headline inflation easing in recent months and growth momentum showing signs of stability. The RBI also projected a GDP growth forecast of 6.5% for the financial year 2025–26, signaling cautious optimism about the country’s economic trajectory.

“The current rate cut aligns with our assessment of inflation trends and growth needs. We expect this move to stimulate demand and strengthen financial stability,” said Sanjay Malhotra, an MPC member and senior official at the finance ministry.

📉 What is the Repo Rate?

The repo rate is the rate at which the Reserve Bank lends short-term funds to commercial banks. A reduction in this rate typically leads to lower borrowing costs for businesses and consumers, encouraging spending and investment.

📅 RBI MPC Meeting Schedule for 2025–26

The RBI conducts six bi-monthly meetings each fiscal year to assess and fine-tune its monetary policy in response to economic data. After today’s meeting, the remaining MPC dates for the year are as follows:

📊 Economic Indicators Driving the Decision

Several key factors contributed to the rate cut decision:

💡 What This Means for You