RBI MPC cuts repo rate by 25 bps to 6.00% and changes stance to 'accommodative'
At its 54th meeting (7-9 April 2025), the RBI's Monetary Policy Committee unanimously cut the policy repo rate by 25 basis points to 6.00% and changed its stance from neutral to accommodative.
Summary
The Monetary Policy Committee (MPC) of the Reserve Bank of India held its 54th meeting, the first of 2025-26, from 7 to 9 April 2025 under Governor Sanjay Malhotra. It unanimously voted to reduce the policy repo rate by 25 basis points to 6.00% with immediate effect; the Standing Deposit Facility (SDF) rate was adjusted to 5.75% and the Marginal Standing Facility (MSF) rate and Bank Rate to 6.25%. The MPC also decided unanimously to change its stance from 'neutral' to 'accommodative'. Real GDP growth for 2025-26 was projected at 6.5% and CPI inflation at 4.0% (Q1 3.6%, Q2 3.9%, Q3 3.8%, Q4 4.4%). The decision is consistent with the medium-term CPI inflation target of 4% within a band of +/-2%. The next MPC meeting was scheduled for 4-6 June 2025.
Key facts
- Meeting
- 54th MPC meeting, 7-9 April 2025 (first of 2025-26)
- Chair
- Governor Sanjay Malhotra
- Repo rate
- cut 25 bps to 6.00% (unanimous)
- SDF / MSF and Bank Rate
- 5.75% / 6.25%
- Stance
- changed from neutral to accommodative
- GDP growth 2025-26 (projection)
- 6.5%
- CPI inflation 2025-26 (projection)
- 4.0%
- Next meeting
- 4-6 June 2025
Practice MCQs 4 questions
To what level did the RBI's Monetary Policy Committee reduce the policy repo rate in April 2025?
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Correct answer: B — 6.00 per cent
6.00 per cent, after a 25 basis point cut; 5.75 per cent became the SDF rate and 6.25 per cent the MSF rate and Bank Rate.
Consider the following statements about the RBI MPC meeting of 7-9 April 2025: 1. The MPC changed its policy stance from neutral to accommodative. 2. The repo rate decision was taken by a 4-2 majority. Which of the statements given above is/are correct?
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Correct answer: A — 1 only
Only 1 is correct. The MPC changed its stance from neutral to accommodative, and the repo rate cut was unanimous, not a split vote.
What CPI inflation rate did the RBI project for 2025-26 in its April 2025 policy?
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Correct answer: D — 4.0 per cent
4.0 per cent; 3.6 per cent and 4.4 per cent are the Q1 and Q4 projections, and 6.5 per cent is the GDP growth projection.
The MPC meeting held from 7 to 9 April 2025 was its:
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Correct answer: C — 54th meeting
54th meeting, the first of financial year 2025-26, chaired by Governor Sanjay Malhotra.