Mumbai, April 7, 2025 – The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) has commenced its three-day meeting to review key interest rates, with widespread anticipation of a 25 basis points (bps) rate cut. This comes in the backdrop of moderating inflation and the need to stimulate economic growth, especially as global challenges like the Trump tariffs weigh heavily on the economy.
The MPC, led by RBI Governor Sanjay Malhotra, is expected to announce its decision on April 9. Experts believe that the central bank may continue its easing cycle, which began in February 2025 with a 25 bps cut, bringing the repo rate to 6.25%. Analysts predict a cumulative reduction of up to 100 bps over the year to support growth.
The meeting also coincides with a favorable economic environment, including declining U.S. interest rates, a stronger rupee, and domestic inflation dipping below the RBI’s target level. Economists suggest that this rare confluence of factors presents an opportunity for the RBI to adopt a more accommodative stance.
The decision is being closely watched by industries and financial markets, as a rate cut could lower borrowing costs, stimulate investment, and boost consumption. However, global uncertainties and trade disruptions remain key challenges for the central bank.
