RBI MPC 2025: New RBI Governor Sanjay Malhotra's First Meeting After Taking The Helm; Here's What to Expect

In the most recent meeting on December 6, the RBI decided to maintain its repo rate at 6.50 per cent. The central bank has not made any changes to interest rates since February 2023

With the Budget 2025 now finalised and out of the way, all attention has shifted to the Reserve Bank of India (RBI), as the upcoming Monetary Policy Committee (MPC) meeting will start on Wednesday. The meeting is scheduled to take place from February 5 to February 7. The RBI’s decisions will be closely watched by financial markets, businesses, and policymakers alike, as they look for clues on interest rates, inflation control, and the broader economic outlook.

This time’s meeting holds extra significance as this will be new RBI governor Sanjay Malhotra’s first MPC meeting after taking over the seat from the former governor Shaktikanta Das.

According to a Reuters poll conducted from January 22 to 30, over 70 per cent of respondents—45 out of 62—predicted that the RBI would reduce its key repo rate by 25 basis points to 6.25 per cent at the end of its February 5-7 meeting under the new governor. However, some participants believe the RBI will keep rates unchanged, primarily due to inflation remaining above the target level.

"With the finance ministry still keeping the overall fiscal deficit in check, there is scope for the RBI to do more to boost the economy. This strengthens our conviction that the Bank - under new leadership - will begin easing monetary policy at the conclusion of its MPC meeting on Friday," said Shilan Shah, deputy chief emerging markets economist at Capital Economics in the report.

In the most recent MPC meeting on December 6, under the leadership of Governor Das, the RBI decided to maintain its repo rate at 6.50 per cent. The central bank has not made any changes to interest rates since February 2023, marking nearly two years of stability.

This time, all eyes are on the new governor as everyone hopes for a rate cut this time and investors are looking forward to what is there for them in the policy announcement this time. It will be interesting to see what new things the new governor will bring to the table.

Meanwhile, a few days back, the RBI governor flagged the rise in digital frauds and advised banks to establish robust and proactive systems to thwart such attempts in his first meeting with bank CEOs. He also urged banks to prioritise financial stability, promote greater financial inclusion, improve digital literacy, and make credit more accessible and affordable.