RBI assess the evolving macroeconomic situation
The MPC voted to cut the policy repo rate by 50 basis points
In a Monetary Policy Statement, 2025-26 Resolution of the RBI Monetary Policy Committee [MPC] that met in their 55th Monetary Policy Committee meeting that held from June 4 to 6, 2025 under the chairmanship of Sanjay Malhotra, Governor, Reserve Bank of India. The MPC members Dr. Nagesh Kumar, Saugata Bhattacharya, Prof. Ram Singh, Dr. Poonam Gupta and Dr. Rajiv Ranjan attended the meeting.
After assessing
the current and evolving macroeconomic situation, the MPC voted to reduce the
policy repo rate by 50 basis points (bps) to 5.50 per cent with immediate
effect. Consequently, the standing deposit facility (SDF) rate under the
liquidity adjustment facility (LAF) shall stand adjusted to 5.25 per cent and
the marginal standing facility (MSF) rate and the Bank Rate to 5.75 per cent.
This decision is
in consonance with the objective of achieving the medium-term target for
consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per
cent, while supporting growth.
In a Liquidity Adjustment Facility about Change in rates, as announced in the Monetary Policy Statement dated June 06, 2025, it has been decided by the Monetary Policy Committee (MPC), 1. to reduce the policy repo rate under the Liquidity Adjustment Facility (LAF) by 50 basis points from 6.00 per cent to 5.50 per cent with immediate effect.
2. Consequently, the
Standing Deposit Facility (SDF) rate and marginal standing facility (MSF) rate
stand adjusted to 5.25 per cent and 5.75 per cent respectively, with immediate
effect. 3. All other terms and conditions of the extant LAF Scheme will remain
unchanged.
Comments
Post a Comment