RBI Cuts Repo Rate to 6% in April 2025 Policy

Mumbai, Apr 9 (PTI) Following are the highlights of the first bi-monthly credit policy of 2025-26 fiscal announced by Reserve Bank Governor Sanjay Malhotra after the 54th meeting of Monetary Policy Committee (MPC) on Wednesday:

* Key interest rate (repo) reduced by 25 basis points to 6 pc, lowering it for the second time in a row

* Six-member MPC unanimously votes to reduce repo rate

* Monetary stance changed to accommodative, meaning MPC to consider only two options -- status quo or a rate cut

* GDP growth forecast for FY26 lowered to 6.5 pc from 6.7

* Indian economy has made steady progress towards goals of price stability, sustained growth

* RBI says trade tariff related measures have exacerbated uncertainties clouding the economic outlook across regions

* Inflation projected at 4 pc in FY26, lower from earlier estimate of 4.2

* RBI permits NPCI to raise UPI transaction limit for person-to-merchant payments

* RBI proposes to review guidelines for lending against gold jewellery

* Central bank proposes to expand scope for co-lending and issue generic regulatory framework

* Minutes of 54th MPC meeting to be published on April 23

* Next meeting of MPC is scheduled from June 4 to 6, 2025.