RBI governor Sanjay Malhotra announces MPC decision: Repo rate reduced by 25 bps to 6% amid Trump’s tariffs

RBI Governor Sanjay Malhotra announced the first bi-monthly monetary policy of the current fiscal. File
| Photo Credit: Reuters

The Monetary Policy Committee (MPC) of the RBI on Wednesday (April 9, 2025) unanimously decided to reduce repo rate by 25 basis points to 6%. It has also changed its stance from ‘neutral’ to accommodative.

Also read | The repo rate in India

The real GDP 2025-26 is forecasted at 6.5%, while the CPI inflation for the same financial year is projected at 4%.

RBI Governor Sanjay Malhotra made the announcements at the first bi-monthly monetary policy of the current fiscal on Wednesday (April 9, 2025).

This will be followed by a post-policy press conference at 12:00 p.m., where the governor will address media queries and explain the rationale behind the committee’s decision.

In February, the MPC slashed the repo rate by 25 basis points to 6.25%. It was the first reduction since May 2020 and the first revision after two-and-a-half years.

Coincidentally, the MPC decision has been announced on the day when US President Donald Trump’s reciprocal tariff kicks in.