RBI Rate Cut, Other February 2025 Monetary Policy HIGHLIGHTS: Sanjay Malhotra announces 25-bps reduction in repo rate, MPC decision unanimous; stance 'neutral'

RBI February 2025 Policy: RBI rate decision a pivotal move, says Manglam Group's NK Gupta

RBI Monetary Policy: RBI action to have positive impact on auto sector along with Budget tax relief, says industry body SIAM’s president

The rate reduction, closely following the relaxation in income tax for individuals in the Budget will certainly have a positive impact on the auto sector, increasing accessibility by reducing the financing costs and  creating a positive sentiment across the market, says Shailesh Chandra, President of SIAM and Managing Director of Tata Passenger Vehicles Ltd & Tata Passenger Electric Mobility.

RBI February 2025 Monetary Policy: Rate cut may be less effective by rising property prices if inflation remains as high as now, says property consultant ANAROCK's Anuj Puri

the RBI policy action piggybacks on the recent taxation benefits announced in the Union Budget, says Anuj Puri, Chairman of ANAROCK Group. "As such, it is undeniably a major boost to the homebuyers, particularly for affordable housing buyers. Many first-time homebuyers who had been hesitating to take the plunge are likely to make their move now as home loan rates will reduce - as long as banks pass on the key benefits to buyers," says Puri. 

"Commercial real estate, especially office spaces, can also benefit from lower borrowing costs for businesses, and lower rates also make REITs more appealing since investors look for stable returns in a falling interest rate environment... That said, the rate cut may be less effective by rising property prices if inflation remains as high as it is now. Also, it remains to be seen if banks pass on the full benefit to borrowers in a timely and seamless manner," he adds. 

RBI February 2025 Policy: RBI rate cut signals strategic move to stimulate growth while maintaining stability, says Axis Ecorp's Aditya Kushwaha 

The RBI decision to cut the repo rate signals a strategic move to stimulate economic growth while maintaining stability, at a time when REITs, fractional ownership, and other innovative investment avenues have reignited investor interest in quality real estate, says Aditya Kushwaha, CEO, Axis Ecorp. 

"With luxury real estate continuing to thrive, driven by strong domestic demand and rising NRI investments, lower interest rates will further enhance affordability and confidence in the sector. This shift is also expected to encourage long-term capital inflows, strengthening forex reserves and reinforcing India’s position as a resilient and attractive market. As the investment landscape evolves, this policy change provides a timely boost, ensuring sustained momentum in the premium real estate segment," he adds. 

RBI February 2025 Policy: RBI's timely & strategic move aligns with improving macroeconomic indicators, says Omaxe's Mohit Goel

RBI Rate Cut News | Global economic backdrop remains challenging, says RBI Governor

The RBI governor says that the global economy is growing below the historical average even though high frequency indicators suggest resilience along with continued trade expansion.

The progress on global disinflation is stalling, hindered by services price inflation, says Sanjay Malhotra. 

RBI Rate Cut News | Rate cut aligns with widespread expectations to boost economic growth, says PB Fintech's Yashish Dahiya

Yashish Dahiya, Chairman and Group CEO, PB Fintech, says that with the Union Budget laying a strong foundation for macroeconomic stability, this rate cut underscores policymakers' commitment to driving economic growth.

By lowering borrowing costs and the recent liquidity support, the RBI is enabling businesses and consumers to drive economic expansion, adds Dahiya. 

RBI Rate Cut News | RBI remains committed to providing sufficient system liquidity 

The central bank has taken a number of steps in this regard.

It will continue to monitor the evolving liquidity and financial market conditions and take appropriate measures proactively to ensure orderly liquidity conditions, says Sanjay Malhotra.

RBI Rate Cut News | Latest consumer inflation projections

• FY26: 4.2 per cent
  • Q1 at 4.5 per cent
  • Q2 at 4.0 per cent
  • Q3 at 3.8 per cent
  • Q4 at 4.2 per cent

Risks are evenly balanced, says the RBI governor. 

RBI Rate Cut News | Take a look at central bank's GDP projections

• FY26: 6.7 per cent
  • Q1 at 6.7 per cent
  • Q2 at 7.0 per cent
  • Q3 at 6.5 per cent
  • Q4 at 6.5 per cent

Risks are evenly balanced, says the RBI Governor. 

RBI Rate Cut News | MPC decides unanimously to keep 'neutral' stance

The MPC remains unambiguously focussed on a durable alignment of inflation with the target, while supporting growth, says the RBI governor. 

RBI Rate Cut News | Rupee under depreciation pressure in recent months, says RBI Governor

RBI Governor Sanjay Malhotra says that the rupee has faced pressure in the recent months.

He says the rupee-dollar exchange rate is determined by market forces.

RBI Rate Cut News | RBI to keep trade-offs between stability & efficiency while formulating regulations, says Sanjay Malhotra

"It will be our attempt to strike the right balance, keeping in view the benefits and costs of each and every regulation," says the RBI governor, reassuring all stakeholders that a consultive process will continued to be followed in regulation-making. The suggestions of stakeholders are valuable and we will give serious consideration to them before taking any major decision.

The RBI chief also says the central bank also ensure that such regulations are implemented smoothly.

RBI Rate Cut News | RBI to keep trade-offs between stability & efficiency while formulating regulations, says Sanjay Malhotra

"It will be our attempt to strike the right balance, keeping in view the benefits and costs of each and every regulation," says the RBI governor, reassuring all stakeholders that a consultive process will continued to be followed in regulation-making.

RBI Monetary Policy LIVE Updates: RBI mandate is to enhance financial stability & consumer protection, says Governor Sanjay Malhotra 

The interest of the economy demands financial stability and consumer protection and the RBI's mandate is to enhance both, says Sanjay Malhotra.

"Economic interest also warrants increasing efficiency, which too is our duty. We recognise that just like there are no free lunches, regulation to enhance stability and consumer protection too is not devoid of costs," he says.

RBI Monetary Policy LIVE Update: MPC could be looking more at inflation-growth dynamics instead of only inflation, says economist Madan Sabnavis 

“ The cut in repo rate and the commentary does indicate that the MPC could be looking more at the inflation-growth dynamics instead of only inflation which was the earlier perception, going forward. Therefore, we could  expect more rate cuts based on economic data. We do think the GDP forecast made for next year at 6.7 per cent is very much doable," says Madan Sabnavis, Chief Economist at Bank of Baroda.

"Inflation at 4.2 per cent will be contingent on both a good monsoon and limited impact of imported inflation. There could be an upside here given global uncertainty, and needs to be watched. The RBI has also clearly stated to the market that it is not targeting an exchange rate and will also ensure orderly liquidity in the market," adds Sabnavis. 

RBI Monetary Policy LIVE Updates | Lower borrowing costs to encourage more individuals to invest in homes, says Freo's Ankur Maheshwari

"This decision has far-reaching benefits—lower borrowing costs will encourage more individuals to invest in homes, particularly those who were previously on the fence due to rising construction costs. Additionally, with tax relief measures announced in Budget 2025, people will have more disposable income, making access to credit easier," says Ankur Maheshwari, CFO, Freo.

"While borrowing becomes more affordable, attractive fixed deposit rates will continue to ensure that savers have secure and rewarding investment options. As a fintech, we see this as a balanced move that supports both borrowers and savers, fostering overall financial growth... It would be great if you could consider including the quotes in any of the stories you might be planning. Also, do let us know if you any other specific questions," says Maheshwari.

RBI Monetary Policy LIVE Updates: Budget focus on agriculture to help tame inflation, says Sanjay Malhotra 

The agriculture focus of the FY26 Union Budget will help in controlling inflation, says the RBI governor. 

Budget 2025 is excellent from both growth as well as inflation points of view, he says. 

RBI Monetary Policy LIVE Updates | Key focus now will be on how effectively banks transmit this cut, says CarePal Money's Sahil Lakshmanan  

The RBI’s decision to cut the repo rate is a strategic move to stimulate economic growth while inflation remains under control, says CarePal Money's Sahil Lakshmanan.

"With the MPC noting that inflation is expected to moderate in FY26, this rate cut signals confidence in price stability, giving room for policy easing. For borrowers, lower EMIs on loans could improve affordability and boost consumption. However, the market response has been measured so far, with the Indian rupee remaining largely unchanged against the US dollar. This suggests that global factors and liquidity conditions will play a crucial role in determining the long-term impact of this decision," says Lakshmanan.

"The key focus now will be on how effectively banks transmit this cut and whether it translates into stronger credit demand and sustained economic momentum," he adds. 

RBI Monetary Policy | Income tax benefit unlikely to have impact on inflation, says RBI Governor 

Sanjay Malhotra says that the income tax benefit (announced in Budget 2025) is unlikely to have impact on inflation.

However, it will certainly support growth, according to the RBI chief.

RBI Monetary Policy LIVE: How much money can you expect to save on home loan? Will repo rate cut impact your EMI?

Multitudes of borrowers in India are likely to get relief in the form of lower EMIs after today's decision.

After today's repo rate revision, home loans at the floating interest rate will be slashed by 0.25 per cent immediately.

As far as the interest rate for home loans at a fixed rate will be cut on the discretion of the respective lender.

Now, how much amount a month and overall can home loan borrowers save after the RBI's rate cut decision? 

Learn more on repo rate & loan EMI here

RBI Monetary Policy LIVE Updates: Central bank projects FY26 GDP growth at 6.7%

The RBI projects GDP growth rate for the financial year 2025-26 at 6.7 per cent, higher than its forecast of 6.4 per cent for the current financial year.

Healthy rabi prospects and an expected recovery in industrial activity should support economic growth in 2025-26, says the RBI Governor.

RBI Monetary Policy LIVE Updates: RBI projects consumer inflation at 4.2% in FY26

The RBI projects retail inflation at 4.2 per cent for FY26.

It has retained its forecast for the current financial year at 4.8 per cent.

RBI Governor Sanjay Malhotra says that food inflation pressures, in absence of any supply side shock, should see a significant softening due to:

• good kharif production; 
• winter-easing in vegetable prices, and 
• favourable rabi crop prospects 

RBI Monetary Policy February LIVE | Cut in deposits will come with a lag, says SBI MD

The lag effect in deposits, in contrast to loans, affects banks' margins initially, but then stability returns in 3-4 months, says Ashwini Tewari, MD, SBI. 

"The transmission takes a while in deposits (than loans)... Customers stand to benefit in both (loans and deposits) as their EMIs come down immediately and existing deposit rates continue for a little longer," he says. 

RBI Monetary Policy LIVE Updates: Repo rate action to impact borrowers directly, says SBI's Ashwini Tewari

SBI MD Ashwini Tewari tells Zee Business that the latest policy action is along expected lines. 

The RBI has already introduced a number of liquidity-related steps. 

"Today's cut will have a direct impact on people, reducing EMIs on car loans, housing loans and personal loans... The RBI Governor has said that another rate cut will be data-driven," says Tewari. 

RBI Monetary Policy LIVE Updates | 3 more rate cuts possible, says Ajay Bagga 

Market veteran Ajay Bagga believes that three more reductions in the repo rate may follow today's monetary policy action.

RBI Monetary Policy LIVE Updates | Ajay Bagga says RBI more optimistic in terms of GDP than Economic Survey

Market expert Ajay Bagga tells Zee Business that the RBI's GDP growth forecast looks more optimisic than the projection laid out in Economic Survey. 

"This is a good sign," says Bagga. 

RBI Monetary Policy LIVE Updates | Ajay Bagga says RBI commentary along expected lines  

Market veteran Ajay Bagga tells Zee Business that the RBI policy meets his expectations.

RBI Monetary Policy LIVE Updates: Economy remains strong but not immune to global challenges, says Sanjay Malhotra

The RBI chief says that it will be the central bank's endeavour to do stakeholder consultations and give importance to such consultations. 

He points out that the economy continues to be strong but is not immune to global challenges.  

RBI Monetary Policy LIVE Updates: RBI Governor says central bank recognises economic interest warrants efficiency

The RBI chief says that the central bank will continue to strengthen, rationalise and refine the prudential framework. 

RBI Monetary Policy LIVE Updates: Inflation targeting has served economy very well, says Sanjay Malhotra

The RBI Governor says that average inflation has remained lower since the introduction of the monetary policy framework. 

RBI Monetary Policy LIVE Updates: Manufacturing recovery expected in second half of year, services sector to be resilient

The RBI Governor says that a recovery is expected in manufacturing in the second half of the financial year while the services sector is resilient. 

RBI Monetary Policy LIVE Updates: MPC feels there might be excessive volatility in inflation due to global issues 

The RBI Governor mentions that there might be excessive volatility in inflation on account of global issues, as perceived by the MPC. 

RBI February 2025 Monetary Policy LIVE Updates: MPC noticed inflation has declined, expected to moderate further this year

The MPC has noticed that inflation has declined and is expected to moderate further this year, gradually aligning with the goal, says the RBI Governor. 

RBI Monetary Policy LIVE Updates: Inflation targeting has served economy very well, says RBI Governor Sanjay Malhotra

The RBI Governor says that average inflation has remained lower since introduction of monetary policy framework. 

RBI Monetary Policy LIVE Update | BREAKING—Repo rate reduced by 25 bps, announces RBI Governor Sanjay Malhotra

RBI Monetary Policy LIVE Updates: 6 in 10 economists polled expect revision in GDP forecast

Six out of every 10 economists polled by Zee Business expect the RBI to tweak its GDP growth forecast in today's policy.

RBI February 2025 Monetary Policy LIVE Updates: 20% economists polled expect no change today 

According to the poll, two in 10 participants expect a status quo in monetary policy today.

RBI February 2025 Monetary Policy LIVE Updates: 8 out of every 10 economists polled by Zee Business expect 25 bps rate cut today 

According to a poll of economists conducted by Zee Business, eight in 10 participants expect a 25-basis-point reduction in the repo rate today. ) How much rate cut you are expecting in this policy

RBI Monetary Policy Review LIVE Updates: GIFT Nifty futures indicate a mildly positive start on Dalal Street today; where to catch LIVE market updates

GIFT Nifty futures—an early indicator of the headline Nifty 50 index—are up 20 points, or 0.1 per cent, at 23,713 at this hour. 

Catch LIVE market updates here

RBI MPC February 2025 Monetary Policy LIVE Updates: Sanjay Malhotra to deliver monetary policy statement at 10 am, address post-policy press conference at noon

RBI February 2025 Monetary Policy Review LIVE Updates: The first policy of 2025, the first review under the new RBI Governor...

This is the first policy review under the new RBI chief, who took the helm as the 26th Governor of the banking regulator in December, succeeding Shaktikanta Das.

RBI February 2025 Monetary Policy Review | 26th RBI Governor Sanjay Malhotra to announce rate decision at 10 am

Welcome to Zeebiz.com's blog on the RBI's February 2025 policy review

Will today's policy contain a status quo or a reduction in the repo rate—the key interest rate at which it lends short-term funds to commercial banks and the very rate that lenders use as benchmark for adjusting their rates?

Currently, the repo rate stands at 6.5 per cent.