Key Takeaways from RBI MPC Meeting: Repo rate, Inflation, GDP forecasts, securitisation of stressed assets and more

Key Takeaways from RBI MPC Meeting: The country's apex lender Reserve Bank of India (RBI) while remaining alert to global trade frictions in its first policy announcement for the FY26 unanimously decided to slash the key policy rate by 25 basis points to 6 per cent with immediate effect. Moreover, it also decided to change the stance from neutral to accommodative, said RBI Governor Sanjay Malhotra while delivering the monetary policy decision. He also emphasised that the rapidly evolving situation requires continuous monitoring and assessment of the economic outlook.

"The recent trade tariff related measures have exacerbated uncertainties clouding the economic outlook across regions, posing new headwinds for global growth and inflation. Amidst this turbulence, the US dollar has weakened appreciably; bond yields have softened significantly; equity markets are correcting; and crude oil prices have fallen to their lowest in over three years," he added.

The governor lowered both the inflation and GDP forecast for FY26.

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Here are the key takeaways from RBI's April MPC 2025 meeting:

Repo rate: Repo rate has been fine-tuned again in view of the evolving macros. Likewise, policymakers unanimously decided to slash repo rate by 25 basis points to 6 per cent.

Also, the stance has been shifted to 'accommodative' from the earlier 'neutral'. "While an accommodative stance entails easy monetary policy that is geared towards stimulating the economy through softer interest rates; tightening refers to contractionary monetary policy whereby interest rates are hiked to restrain spending and curb economic activity, all with the objective of reining in inflation," read the Governor's statement.

GDP projection: GDP projection for the FY26 has been estimated at 6.5 per cent for FY25-26. This is at 6.5 per cent for Q1; Q2 at 6.7 per cent; Q3 at 6.6 per cent; and Q4 at 6.3 per cent.

Inflation: Inflation projection has also been lowered for the FY26 to 4 per cent, with Q1 at 3.6 per cent; Q2 at 3.9 per cent; Q3 at 3.8 per cent; and Q4 at 4.4 per cent. The risks are evenly balanced.

Securitisation of stressed assets: As part of the additional measures, the apex banker has proposed to enable securitisation of stressed assets through marketbased mechanism. This is in addition to the existing ARC route under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002.

Securitisation of asset is the process of pooling different debt categories that are packaged as securities and are sold to investors.

Comprehensive regulation on gold loans: Loans against the collateral of gold jewellery and ornaments, commonly known as gold loans, are extended by regulated entities for both consumption and income-generation purposes.

In order to harmonise guidelines across various types of regulated entities, to the extent possible, keeping in view their differential riskbearing capabilities, we shall issue comprehensive regulations on prudential norms and conduct related aspects for such loans, read the governor's statement.