 "RBI MPC meeting LIVE updates: Real GDP is now projected for FY26 at 6.5%.")
RBI's Monetary Policy Committee has decided to cut repo rate by 25 basis points to 6 per cent, says RBI Governor Sanjay Malhotra.
This is the first MPC meeting for the 2025-26 financial year (FY26). Since October 2024, the RBI has been gradually easing policy through rate cuts, stance adjustments, liquidity support, and flexible exchange rate management. After holding the repo rate steady at 6.5 per cent since February 2023, the RBI lowered it to 6.25 per cent in February 2025—the first cut in nearly five years.
What is the RBI MPC?
The MPC of the RBI meets every two months to decide on key policy measures, primarily the benchmark interest rates. Its decisions are guided by factors such as inflation, liquidity conditions, and overall economic outlook. The committee has six members—three from the RBI, including the Governor who chairs the meetings, and three external members appointed by the central government for a four-year term.
What does an RBI rate cut mean?
Lower rates are aimed at boosting economic activity by encouraging spending and investment. If the RBI goes ahead with another rate cut, it would mark a total reduction of 100 basis points in 2025, including the cut announced in February. This would likely lead to lower interest rates on home, car, and personal loans—making borrowing cheaper for both consumers and businesses.