New Delhi [India], April 6 (ANI): The Reserve Bank of India (RBI) will hold its first monetary policy review meeting of 2025-26 starting Monday. The outcome of the three-day meeting will be announced on Wednesday morning (10 am).
The RBI typically conducts six bimonthly meetings in a financial year, where it deliberates interest rates, money supply, inflation outlook, and various macroeconomic indicators. The other five meetings are scheduled for June 4-6, August 5-7, September 29-October 1, December 3-5, and February 4-6.
The RBI monetary policy committee (MPC) consists of six members--three from the RBI, including the Governor, and three external members appointed by the central government.
The main objective of the MPC is to maintain price stability while supporting economic growth. The RBI's target is to keep inflation within the range of 2-6 per cent, with a medium-term goal of 4 per cent.
In the previous MPC meeting on February 7, the Reserve Bank of India (RBI) had unanimously decided to reduce the policy rate by 25 basis points (bps) from 6.5 per cent to 6.25 per cent. This was the first rate cut in about 5 years.
The repo rate is the rate of interest at which the RBI lends to other banks.
Barring the latest rate cut, the RBI has kept the repo rate elevated at 6.5 per cent since May 2022 in the fight against inflation. Raising interest rates is a monetary policy instrument that typically helps suppress demand in the economy, thereby helping the inflation rate decline.
Bank of Baroda asserted in a note recently that the RBI's monetary policy committee will cut the repo rate by a cumulative 75 basis points in 2025.
The Reserve Bank of India's monetary policy committee is expected to shift its focus from concerns around inflation to supporting growth in its next review meeting in early April, Care Edge Ratings had asserted recently. The rating agency in a report said the monetary policy committee will go for another 25-basis-point reduction in the repo rate at April 7-9 meeting. (ANI)
