RBI MPC 2025: New Governor Sanjay Malhotra Announces Decision In Last Meeting Of FY25, Check Repo Rate Here

This is the first meeting of the panel under the leadership of RBI Governor Sanjay Malhotra, who assumed office in December 2024 following the end of Shaktikanta Das' tenure.

The committee further announced that it is adopting a 'neutral' stance on monetary policy. 

Source : PTI

RBI MPC 2025: The Reserve Bank of India (RBI)’s Monetary Policy Committee (MPC) announced its decision on key interest rates on Friday. The panel decided to reduce the policy by 25 basis points from 6.5 per cent to 6.25 per cent. This decision was taken unanimously by the committee. Notably, the last time the MPC opted to revise key rates was in February 2023.

The committee further announced that it is adopting a 'neutral' stance on monetary policy. This is the first meeting of the panel under the leadership of RBI Governor Sanjay Malhotra, who assumed office in December 2024 following the end of Shaktikanta Das' tenure. This is also the last meeting of the MPC in the current 2024-25 fiscal year (FY25). The MPC began its Feb 2025 meeting on Wednesday, February 5. 

 The revision in key rates means that the standing deposit facility (SDF) rate has now been revised to 6 per cent, while the bank rate and marginal standing facility (MSF) rate stands at 6.50 per cent. The 6-member panel was chaired by Governor Malhotra, and included Dr Nagesh Kumar, Saugata Bhattacharya, Prof Ram Singh, Dr Rajiv Ranjan, and M Rajeshwar Rao.

Economic Outlook

Talking about the global economy, the governor said that the growth remains below the historical average even as 'high frequency indicators suggest resilience amidst continued expansion in world trade'. Malhotra noted that the slower pace of disinflation, persisting geopolitical conflicts, and uncertainties in policy. "The strong dollar, inter alia, continues to strain emerging market currencies and enhance volatility in financial markets," he added.

Looking forward at the growth aspects for the upcoming fiscal year, the official said that industrial activity is expected to recover and healthy rabi prospects should further provide support to the economy. In terms of demand, the tax relief provided in the latest Union Budget is expected to boost household consumption. "Fixed investment is expected to recover, supported by higher capacity utilisation levels, healthy balance sheets of financial institutions and corporates, and Government’s continued emphasis on capital expenditure," the governor noted.

However, he addded, that protectionist trade policies, financial market uncertainties, volatility in global commodity prices, and geo-political tensions continue to remain major risks to the growth outlook.