RBI MPC Review April 2025 HIGHLIGHTS: 25-bp repo rate cut, stance changed to 'accommodative', FY26 inflation projection eased to 4%

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MPC Post-Policy Remarks LIVE: RBI remains committed to ensuring ample liquidity

The RBI remains committed to maintaining sufficient liquidity to ensure a speedy transmission of rate reductions, says Sanjay Malhotra, while interaction with the media. 

CATCH KEY TAKEAWAYS OF APRIL MPC REVIEW

RBI more concerned about impact on growth than inflation: Sanjay Malhotra on trade tariffs

"More than inflation, we are concerned about tariff impact on growth," says the RBI chief. 

RBI MPC Post-Policy Media Interaction LIVE: Growth rate projection lowered mainly because of trade tariff uncertainties 

The RBI Governor clarifies that the revision in the central bank's growth forecast is primarily because of the tariff-related uncertainties.

RBI MPC April Review LIVE Update: FY26 GDP growth projection at 6.5%, risks evenly balanced, says RBI Governor

• 6.5% in Q1
• 6.7% in Q2 
• 6.6% in Q3 
• 6.3% in Q4 

"While the risks are evenly balanced around these baseline projections, uncertainties remain high in the wake of the recent spike in global volatility," says the RBI chief.

The downward revision in the annual forecast "essentially reflects the impact of global trade and policy uncertainties", he adds. 

RBI MPC April Review LIVE Update: Global economic outlook fast changing, says Sanjay Malhotra 

"The recent trade tariff related measures have exacerbated uncertainties clouding the economic outlook across regions, posing new headwinds for global growth and inflation," says the RBI chief. 

Central banks are navigating cautiously, with signs of policy divergence across jurisdictions, reflecting their own domestic priorities, he says. 

The RBI Governor highlights the following as consequences to the "global turbulence":

• US dollar has weakened
• Bond yields have softened
• Equity markets are correcting
• Crude oil prices have fallen to three-year lows

RBI MPC Review LIVE Update: Economy has made steady progress towards goals of price stability & sustained growth, says Sanjay Malhotra

Economic growth is improving after a weak performance in the first half of the last financial year, although it still remains lower than what "we aspire for", says the RBI Governor. 

The Indian economy has made steady progress towards the goals of price stability and sustained growth, he says. 

RBI FY26 CPI inflation projection lowered to 4%—See where RBI has placed its quarterly forecasts now

RBI Governor Sanjay Malhotra has announced revisions in the central bank’s inflation projections for the coming months.

Now, the RBI’s all-powerful MPC sees consumer inflation averaging at 4.0 per cent in FY26.

This marks a 20-basis-point decrease from the panel’s earlier estimate of 4.2 per cent.

READ MORE ON MPC INFLATION PROJECTIONS

RBI MPC April 2025 Policy Review LIVE: All eyes on post-policy presser at noon

With the MPC's much-awaited decisions on key rates and policy stance now out of the way, all eyes are now on the RBI Governor's media interaction scheduled to start at 12 pm. 

Today's conference will be the current RBI Governor's second such interaction with the media since he took office in December last year.       

RBI MPC April Review LIVE Update: Consumer inflation forecasts revised 

READ MORE ON RBI INFLATION FORECAST

RBI MPC April Review LIVE Update: 2025 has begun on an anxious note for global economy, says RBI Governor 

"The year has begun on an anxious note for the global economy... Some of the concerns on trade frictions are coming true, unsettling the global community," says the RBI Governor. 

The RBI, he says, continues to be alert to these global developments.

RBI MPC April Review LIVE Update: RBI alert on global developments, uncertainties may put more pressure on rupee, says Sanjay Malhotra

Global uncertainties may put further pressure on the domestic currency, says the RBI chief. 

He also says that the central bank is closely tracking emerging global developments.

RBI Monetary Policy Review LIVE Update: Sanjay Malhotra says global economy is going through exceptional uncertainties 

The RBI governor says that the monetary policy will play an anchor role in ensuring domestic stability at the current juncture.

The global economy, he says, is undergoing "exceptional uncertainties". 

RBI Monetary Policy Review LIVE Update: RBI aiming for non-inflationary growth powered by better demand & sustained macro balance, says Sanjay Malhotra 

The RBI governor says that the central bank is aiming for non-inflationary growth that is built on foundation of improved demand and sustained macroeconomic balance.

RBI MPC Policy Review LIVE: RBI remains committed to ensuring sufficient liquidity in banking system, says Sanjay Malhotra

The RBI remains committed to providing sufficient liquidity in the system, says the RBI chief.

The liquidity was in deficit in January and then turned in surplus owing to a host of measures, he says. 

RBI MPC Policy Review LIVE: RBI proposes to allow NPCI to revise 'person to merchant' UPI transaction limit  

The central bank has proposed to permit payment system provider NPCI to revise the existing UPI transaction limits applicable to the 'person to merchant' category, as required by the economy, says the RBI Governor.  

RBI MPC Review April 2025 LIVE: FY26 GDP projection lowered by 20 bps

The MPC now expects domestic GDP growth to stand at 6.5 per cent in the current financial year, a shift from its February projection of 6.7 per cent. 

RBI MPC April Review LIVE Update: RBI cites softening of food & energy rates behind decision to revise inflation projections

The MPC now forecasts inflation to average at 4.0 per cent in the current financial year, which is 20 basis points below its February projection. 

It has cut its projections for Q1 and Q2 by 90 bps and 10 bps, respectively, left the Q3 projection unchanged, and raised its Q4 estimate by 20 bps, data shows. 

RBI MPC April Review LIVE Update: Retail inflation projections revised downwards

RBI MPC April Review LIVE Update: Consumer inflation projected at 4.0% in FY26, says Sanjay Malhotra

The RBI now projects consumer inflation to average 4.0 per cent in FY26, citing "evenly-balanced risks".

It forecasts inflation at: 

• 3.6% in Q1
• 3.9% in Q2
• 3.8% in Q3
• 4.4% Q4

RBI MPC April Review LIVE Update: Fall in crude oil prices, concerns on lingering global market uncertainties pose upside risks to inflation trajectory, says Sanjay Malhotra

RBI MPC April Review LIVE Update: Current stance (neutral) enables MPC to move either way, explains Sanjay Malhotra

The switch to "accommodative" stance enables it to act on the easing side, he explains. 

RBI MPC April Review LIVE Update: MPC votes unanimously to cut repo rate by 25 bps & to change stance to 'accommodative'

Both decisions are taken unanimously by the MPC, says the RBI Governor. 

RBI MPC April Review LIVE Update: MPC voted unanimously to cut repo rate by 25 bps

The repo rate now stands at 6.0 per cent, effective immediately, says Sanjay Malhotra. 

The MPC's decision to lower the rate is unanimous, he says. 

RBI MPC April Review LIVE Update: Growth is improving since weak performance in Q1 FY25

However, “growth is still weaker compare to what we aspire for”, says the RBI governor.

RBI MPC April Review LIVE Update: Crude oil prices have fallen to three-year lows

As we speak, crude oil is around $60 per barrel, says the RBI Governor. 

RBI MPC Review LIVE: 3 main things watch out for in today's MPC review

According to Zee Business research, three things will be tracked closely in today's policy statement:

• Cash position
• RBI’s views on the impact of tariffs on the Indian economy
• GDP and inflation projections in light of trade war jitters

Anil Singhvi's view on RBI policy outcome 

Zee Business Managing Editor said that if RBI's Governor Sanjay Malhotra views current tariff turmoil to not impact inflation in the country, he may surprise the Street by a 50 basis point rate cut. This is if he gives priority to growth over inflation.

RBI MPC Policy Review LIVE: Where does RBI see consumer inflation in coming months?

The central bank's Monetary Policy Committee currently forecasts consumer inflation to average at 4.2 per cent in FY26, with 4.5 per cent in Q1, 4.0 per cent in Q2, 3.8 per cent in Q3, and 4.2 per cent in Q4.

Gauged by the Consumer Price Index (CPI), consumer inflation is the rate of increase in the prices consumers pay for select goods and services.

RBI MPC Policy Review| What dud RBI Governor-led MPC do  in February?

At its February review, the MPC decided unanimously to cut the repo rate by 25 bps to 6.25 per cent and to keep its stance at ‘neutral’ while remaining “unambiguously focussed on a durable alignment of inflation with the target, while supporting growth”.

Minutes of the last review of FY25, released in late February, showed that policymakers expect inflation to align with their medium-term goal of 4.0 per cent, creating room for addressing concerns on the growth front.

RBI April MPC Review: Before policy announcements, take a look at current repo rate & other key policy rates  

Here are the current policy rates, ahead of the April 9 policy review:

RBI MPC April Review | Does repo rate impact home loan interest rates?

When the central bank raises the repo rate, or the interest rate at which it lends short-term funds to commercial lenders. home loan interest rates tend to rise. This is because the hike in the repo rate increases the borrowing costs for these lenders. 

On the flipside, when the RBI lowers the repo rate, home loan interest rates may fall.

RBI MPC April Review LIVE: RBI forecasts GDP growth at 6.7% in FY26

Currently, the Reserve Bank of India Governor-headed MPC projects GDP growth at 6.7 per cent in FY26, with the following quarterly forecasts:

• 6.7% in Q1
• 7.0% in Q2
• 6.5% in Q3
• 6.5% in Q4

RBI MPC April Review LIVE: Will panel tweak GDP projections?

None of the economists polled by Zee Business expects a change in the RBI’s existing GDP projections.

RBI MPC Review April 2025 LIVE | What does a 'neutral' policy stance mean?

Currently, the MPC maintains a ‘neutral’ stance of monetary policy.

This stance enables the all-power panel, headed by the RBI Governor, to act on either side while adjusting policy rates on the basis of prevailing economic conditions.

RBI MPC Review April 2025 LIVE | Can you expect a change in stance?

Three out of every four economists polled by Zee Business expect the Monetary Policy Committee to switch to an “accommodative” stance of policy in the April review.

The remaining 25 per cent expect no change in stance from "neutral". 

RBI MPC April Review LIVE | How many repo rate cuts can you expect in FY26?

All of the participants in a Zee Business poll of economists expect the central bank to announce rate cuts amounting to 50 basis points in FY26, which began on April 1.

READ MORE ON WHAT TO EXPECT IN APRIL RBI MPC REVIEW 

RBI MPC April 2025 Review LIVE: Can you expect repo rate cut in April 9 policy?

According to economists polled by Zee Business, the RBI is expected to cut the repo rate by 25 bps in this scheduled review. 

Currently, the RBI Governor-led MPC— which comprises six RBI members and external members (three each)—conducts six bi-monthly reviews every year. 

RBI MPC April 2025 Review LIVE: FY26's first review comes amidst global tariff war  

The current MPC review comes at a time when many economists are concerned whether fresh escalations in the ongoing trade war will stall GDP growth and delay reductions in COVID-era interest rates.

Read on to learn about what you can expect from the April 7-9 MPC review meeting.

RBI MPC April Review LIVE:  RBI Governor Sanjay Malhotra all set to announce policy at 10 am 

RBI Governor Sanjay Malhotra is scheduled to announce a key rate decision at 10 am on Wednesday, April 9.

This is the first bi-monthly review of FY26, which began on April 1.

It is also the second review under the RBI's current governor, Sanjay Malhotra, who took office in December last year.

Follow this space to catch latest updates on the April 7-9 RBI monetary policy review.