RBI MPC Meeting 2025 Highlights: RBI cuts repo rate to 6.25% after 2 years, cites slowing growth and easing inflation

• 19:58 | February 7, 2025

  RBI Monetary Policy Live: MPC cuts repo rate by 25 bps to to boost growth amid easing inflation and global uncertainties, maintaining neutral stance.

  

  MPC cuts repo rate by 25 bps to support growth

  Repo rate cut by 25 basis points to 6.25% to boost growth amid easing inflation and global uncertainties, maintaining neutral stance.

• 19:51 | February 7, 2025

  RBI Monetary Policy Live: Loans to get cheaper after RBI cuts benchmark rate

  Home, auto and other loans are likely to see a drop in interest rates after the Reserve Bank of India under a new Governor cut the key benchmark rate on Friday for the first time in almost five years to spur a sluggish economy.

  The Monetary Policy Committee, headed by RBI Governor Sanjay Malhotra, slashed the repo rate by 25 basis points to 6.25 per cent. This was the first reduction since May 2020 and the first revision after two-and-a-half years. (PTI)

• 19:46 | February 7, 2025

  RBI Monetary Policy Live: Banks to get sufficient time to implement regulations such as LCR, ECL: RBI Guv Malhotra

  RBI Governor Sanjay Malhotra on Friday assured Banks that they will be given sufficient time to implement the proposed regulatory changes pertaining to liquidity coverage ratio (LCR), expected credit loss (ECL) framework for provisioning by banks, and the prudential norms governing projects under implementation.

  He emphasised that the central bank will ensure that the implementation of such regulations is smooth; giving sufficient time for transition and where regulations have major implications, the implementation will be carried out in a phased manner.

  Malhotra specifically mentioned that LCR will not be implemented at least before March 31, 2026. The RBI’s draft circular on Basel III Framework on Liquidity Standards — Liquidity Coverage Ratio (LCR) had proposed April 1, 2025, as the effective date forimplementation.

  LCR promotes the short-term resilience of the liquidity risk profile of banks by ensuring that they have an adequate stock of unencumbered high-quality liquid assets (HQLA) that can be converted easily and immediately in private markets into cash to meet their liquidity needs for a 30-day liquidity stress scenario.

  

  Banks to get sufficient time to implement regulations such as LCR, ECL: RBI Guv Malhotra

  RBI Governor assures banks of smooth implementation of regulatory changes, including LCR and ECL framework, with phased approach and stakeholder consultation.

• 17:13 | February 7, 2025

  RBI Monetary Policy Live: RBI allows SEBI registered non-bank brokers to access NDS-OM

  The Reserve Bank of India has decided to allow non-bank brokers registered with SEBI to directly access the Negotiated Dealing System – Order Matching (NDS-OM), which is an electronic trading platform for secondary market transactions in government securities (G-sec).

  “Access to NDS-OM is, at present, available to regulated entities and to the clients of banks and standalone primary dealers. With a view to widening access, it has been decided that non-bank brokers registered with SEBI can directly access NDS-OM, on behalf of their clients,” the RBI said. “These brokers may access NDS-OM subject to the regulations and conditions laid down by the Reserve Bank in this regard. Necessary instructions are being issued separately,” it added.

  

  RBI allows SEBI registered non-bank brokers to access NDS-OM

  RBI allows non-bank brokers to access NDS-OM for G-sec trading, enhancing retail investor access and liquidity in government securities.

• 17:12 | February 7, 2025

  RBI Monetary Policy Live: RBI forms working group to review trading, settlement timings of regulated markets

  

  RBI forms working group to review trading, settlement timings of financial markets

  RBI forms working group to review financial market trading and settlement timings for efficiency and global alignment by 2025.

• 15:10 | February 7, 2025

  RBI Monetary Policy Live : “Would like to stick my neck out and say India certainly can achieve 7% plus growth”, RBI Governor

  RBI Governor Sanjay Malhotra on Friday said India can certainly achieve 7% or above growth and that should be what the country should aspire for.

  “These are difficult questions to answer, but nevertheless, I would like to stick my neck out and say that certainly India can achieve 7% plus growth rate, and we should certainly aspire for,” RBI Governor said, when asked whether 7% or above growth rate is achievable, at the post MPC press conference.

  The government in its Economic Survey projected growth rate at 6.3-6.8% for the upcoming fiscal - 2025-26. The RBI today projected 2025-26 growth at 6.7%.

  Asked to respond whether growth more important or inflation, RBI Governor said in India’s case, the primary objective is to manage inflation and price stability, keeping in view the growth objective.

  “So we will continuously focus on that, trying to meet these objectives. We will try to align the inflation with the target that has been given to us,” he said.

  At the same time, Malhotra said he felt that time has come where the RBI can be more supportive of growth, given inflation is coming down.

  On the inflation front, the central bank expects Consumer Price Index (CPI) inflation to ease to 4.8% in 2024-25, with Q4 inflation projected at 4.4%. For 2025-26, inflation is forecasted at 4.2%, with quarterly estimates as Q1 at 4.5%, Q2 at 4.0%, Q3 at 3.8% and Q4 at 4.2%.

  Announcing highlights from the recently held RBI’s Monetary Policy Committee decisions, Governor Malhotra earlier today said that the inflation has declined, supported by a favourable outlook on food prices and the continued transmission of past monetary policy actions. It is expected to further moderate in 2025-26, gradually aligning with the target.

  Malhotra highlighted that food inflation pressures are expected to soften significantly with a favourable rabi crop, contributing to a stable inflation outlook.

  In his first Monetary Policy announcement since assuming the top post at RBI, they had unanimously decided to reduce the policy rate by 25 basis points (bps) from 6.5% to 6.25%, in first such move in about 5 years. (ANI)

• 14:55 | February 7, 2025

  RBI Monetary Policy Live : Repo rate cut to provide long-awaited relief on interest rates, Experts

  The repo rate cut by 25 basis points by the monetary policy committee (MPC) of RBI announced Friday will give a long-awaited relief on interest rates and also be supportive of economic growth, according to experts.

  Repo rate is the interest rate at which the RBI lends money to commercial banks.

  Chief economist of Crisil Limited Dharmakirti Joshi said that as expected, the MPC of the central bank cut rates for the first time since May 2020.

  The repo rate has been cut by 25 basis points which now stands at 6.25 per cent.

  Joshi said that the recent easing in consumer price index (CPI) inflation and the need to remain supportive of economic growth has moved the RBI to act in this regard.

  However, the MPC maintained the policy stance at ‘neutral’, which gives flexibility to remain data dependent and respond to exigencies, Joshi said.

  The MPC moves in the future will depend more on domestic inflation, he said.

  “Elevated rates have impacted India’s GDP growth, while the budget for the next financial year is mildly supportive of growth, while continuing on the path of fiscal consolidation,” he said.

  Joshi expressed hope that the MPC would cut the repo rate to another 75 basis points to 100 basis points in the next financial year.

  Chief Investment Officer of Axis Securities PMS Naveen Kulkarni said, “The RBI reversed the interest rate cycle by announcing a rate cut of 25 basis points. This was largely anticipated.” The GDP growth for the current fiscal has been revised downwards to 6.4 per cent from 6.6 per cent, he said.

  “And for the next fiscal, the GDP is expected to be at 6.7 per cent. We could see another rate cut of 25 basis points in the forthcoming meetings of the MPC,” he said. (PTI)

• 13:58 | February 7, 2025

  RBI Monetary Policy Live Reactions: Umesh Revankar, Executive Vice Chairman, Shriram Finance

  “The Reserve Bank of India’s monetary policy announcement today is much-needed relief for promoting economic growth while also attempting to control inflation. While there have been signs of liquidity injection, the ease in policy provides a stable framework for businesses across sectors. The policy has direct impact on liquidity in the banking system, influencing how easily NBFCs can raise capital for lending.

  Today’s policy announcements will have an impact on the lending sector, primarily through changes in interest rates and liquidity under current economic conditions. In the Union Budget, the Finance Minister proposed a number of changes aimed at increasing people’s purchasing power as disposable incomes rise. The 25 BPS reduction in the REPO Rate will help NBFCs reduce borrowing costs, pass it on to the customers potentially increasing credit demand. As a result of available disposable incomes and lower borrowing costs, the system’s liquidity may increase, influencing purchases and leading to an increase in manufacturing activities and overall economic growth.”

• 13:56 | February 7, 2025

  RBI Monetary Policy Live Reactions: Rajiv Sabharwal MD and CEO, Tata Capital

  “The RBI’s decision to reduce the repo rate to 6.25% is a well-calibrated step that reflects confidence in India’s economic resilience while maintaining financial stability. This move will ease borrowing costs, supporting credit expansion, particularly in rural and semi-urban segments, where demand continues to strengthen.

  At the same time, the increase in the SDF (standing deposit facility) rate signals the central bank’s commitment to managing liquidity amid evolving global uncertainties. The policy direction coupled with fiscal measures in the FY26 Budget—will provide impetus to key sectors, including MSMEs and manufacturing.”

• 13:55 | February 7, 2025

  RBI Monetary Policy Live Reactions: Madhavi Arora, Chief Economist, Emkay Global Financial Services

  As expected, RBI commenced the cut cycle with a 25bps cut, as policy tradeoffs are turning less challenging with tepid underlying growth, easing inflation concerns and a perceptible change in RBI’s INR management stance.

  While market participants are disappointed with no new explicit announcement on liquidity measures, we reckon such announcements do not need to be announced on the MPC policy platform per se and can be undertaken as and when needed. 

  The January liquidity measures are yet to be completely implemented, and near-term system liquidity deficit, including durable liquidity, appears comfortable compared to Jan-25 highs.

  Policymakers may also want to keep sufficient tools in reserve and not use them all in one go, especially as global dynamics are very fluid and tricky, implying the need to ensure enough tools to react in times of stress.

  However, we maintain after easing in Feb’25, system liquidity will turn ugly to the tune of ~Rs2.5tn+ by end-Mar’25, sans any additional liquidity measures. 

  This implies more measures are on the anvil if RBI finds this level of deficit uncomfortable for policy transmission, especially as the depth of the cut cycle is still arguable.

  We expect more OMOs in primary/secondary markets, followed by VRRs and more FX swaps, especially as the RBI’s forward book is heavy with large near-term maturity (~USD68bn outstanding as of Dec’24). 

  We expect additional OMO purchases of ~Rs300 bn ahead, implying net OMOs of ~Rs900-950 bn+ in FY25E.

  On the regulatory conditions front, the Governor stated that while strengthening and enhancing the regulatory framework is necessary, “there are trade-offs between stability and efficiency”, and that the RBI will attempt to “strike the right balance” between this when formulating regulations.

  In the absence of any explicit regulatory easing in today’s policy, this can be seen as a tacit acknowledgement that recent regulatory tightening may have been a tad too strict, and some easing may be on the way if conditions remain unfavorable. 

  We maintain that possible easing in ensuing tighter LCR norms (Apr’25 onwards) and provisioning standards might be a preferred policy tool to ease regulatory measures vs CRR cut. 

• 13:50 | February 7, 2025

  RBI Monetary Policy Live Reactions: Jatinder Handoo, CEO, Digital Lenders Association of India, DLAI

  “The Reserve Bank of India’s (RBI) decision to reduce the repo rate by 25 basis points is a welcome move, aligning with the broader goal of boosting economic growth through increased household consumption expenditure. With the Union Budget also signaling tax cuts, this rate cut serves as the first step in stimulating growth by lowering borrowing costs.

  As lending rates decline, market sentiment is expected to improve, encouraging private sector investments. This decision will benefit fintech lenders and borrowers alike, facilitating greater access to credit and supporting the expansion of digital lending.

  Additionally, RBI Governor’s emphasis on rising cyber threats and digital risks underscores the importance of strengthening financial sector resilience. The introduction of the ‘fin.in’ ___domain for financial institutions is a proactive step in securing the digital ecosystem. Further, the initiative “Financial Literacy: Women’s Prosperity” is an encouraging move toward greater financial inclusion and empowerment.”

  This policy direction reaffirms India’s commitment to fostering a strong, inclusive, and digitally secure financial sector while supporting economic growth.

• 13:37 | February 7, 2025

  Currency Market live updates today: Rupee recovers 26 paise from all-time low level to 87.33 against US dollar

  The rupee recovered 26 paise from all-time low closing level to 87.33 against the US dollar on Friday and was later trading at 87.45 against the greenback after the Reserve Bank reduced repo rate by 25 basis points.

  At the interbank foreign exchange, the rupee opened at 87.57, it touched an intraday high of 87.33 and a low of 87.57 against the greenback in morning trade. It was trading at 87.45 against the US dollar at 1213 hrs.

  Forex traders said it was widely anticipated that the Reserve Bank of India (RBI) will deliver a rate cut and hence the market has not reacted much to the rate cuts.

  The RBI under new Governor Sanjay Malhotra on Friday cut the key interest rate for the first time in nearly five years.

  

  Rupee recovers 26 paise from all-time low level to 87.33 against US dollar

  Indian rupee hits record low against US dollar as RBI rate cut looms, global trade tensions persist.

• 13:30 | February 7, 2025

  RBI Monetary Policy Live: Experts cheer repo rate cut, budgetary boost for real estate and investments

  In a move that is expected to boost residential real estate, business investments, and overall economic growth, experts have welcomed RBI’s repo rate cut, combined with budgetary measures for real estate and investments -- a game changer for economic growth.

  According to Dr Samantak Das, Chief Economist and Head of Research and REIS, India, JLL, the RBI’s decision aligns monetary policy with fiscal strategies to reignite consumption. He emphasised that easing the cost of capital would inject momentum into spending and investment.

  He said, “The rate cut - the first in nearly 5 years - sends a clear signal that a cohesive policy framework is in play, prioritising growth while keeping an eye on risks. For the real estate sector, the implications are profound and far-reaching. We anticipate this rate cut to be a catalyst, igniting homebuyer sentiment, enhancing affordability, and potentially unleashing a new wave of demand in the housing market.” (ANI)

• 13:29 | February 7, 2025

  RBI Monetary Policy Live Reactions: HP Singh, CMD, Satin Creditcare

  “The government’s decision to revise the repo rate after a long period is a well-calibrated move, keeping in mind current macroeconomic factors. The intent to support growth and financial inclusion has always been there, but given the evolving economic landscape, this adjustment comes at the right time. Lower borrowing costs will increase liquidity, putting more disposable income in the hands of individuals and driving rural demand. This will positively impact small businesses, micro-entrepreneurs, and consumption patterns, creating a ripple effect across the economy. Additionally, the rise in affordable housing demand will further strengthen financial inclusion. With the RBI expected to remain accommodative, this will be particularly beneficial for NBFCs, especially larger, well-diversified, and highly rated players, enabling them to extend credit more effectively. At Satin Creditcare, we see this as an opportunity to deepen financial empowerment, helping individuals and businesses build a more secure and self-sustaining future.”

• 13:26 | February 7, 2025

  RBI Monetary Policy Live Reactions: Rishi Anand, MD & CEO, Aadhar Housing Finance Limited

  Today’s rate cut by 25 basis points after a gap of nearly five years is much in line with our expectations and set to provide an overall support as well as be a catalyst to growth enablers outlined in the recent union budget. The benefits of this rate cut will begin to accrue on an immediate basis and expected to be fully realized in next 3 to 6 months, benefiting customers. This step is in the right direction aligning with the sustained central bank assurance of proactive liquidity support and ally concerns of liquidity crunch, thereby accelerating growth.”

• 13:20 | February 7, 2025

  RBI Monetary Policy Live Reactions: Madhavi Arora, Chief Economist, Emkay Global Financial Services.

  As expected, RBI commenced the cut cycle with a 25bps cut, as policy tradeoffs are turning less challenging with tepid underlying growth, easing inflation concerns and a perceptible change in RBI’s INR management stance.

  • While market participants are disappointed with no new explicit announcement on liquidity measures, we reckon such announcements do not need to be announced on the MPC policy platform per se and can be undertaken as and when needed.
  • The January liquidity measures are yet to be completely implemented, and near-term system liquidity deficit, including durable liquidity, appears comfortable compared to Jan-25 highs.
  • Policymakers may also want to keep sufficient tools in reserve and not use them all in one go, especially as global dynamics are very fluid and tricky, implying the need to ensure enough tools to react in times of stress.
  • However, we maintain after easing in Feb’25, system liquidity will turn ugly to the tune of ~Rs2.5tn+ by end-Mar’25, sans any additional liquidity measures.
  • This implies more measures are on the anvil if RBI finds this level of deficit uncomfortable for policy transmission, especially as the depth of the cut cycle is still arguable.
  • We expect more OMOs in primary/secondary markets, followed by VRRs and more FX swaps, especially as the RBI’s forward book is heavy with large near-term maturity (~USD68bn outstanding as of Dec’24).
  • We expect additional OMO purchases of ~Rs300 bn ahead, implying net OMOs of ~Rs900-950 bn+ in FY25E.
  • On the regulatory conditions front, the Governor stated that while strengthening and enhancing the regulatory framework is necessary, “there are trade-offs between stability and efficiency”, and that the RBI will attempt to “strike the right balance” between this when formulating regulations.
  • In the absence of any explicit regulatory easing in today’s policy, this can be seen as a tacit acknowledgement that recent regulatory tightening may have been a tad too strict, and some easing may be on the way if conditions remain unfavourable.
  • We maintain that possible easing in ensuing tighter LCR norms (Apr’25 onwards) and provisioning standards might be a preferred policy tool to ease regulatory measures vs CRR cut.
• 13:16 | February 7, 2025

  RBI Monetary Policy Live Reactions: Killol Pandya, Senior Fund Manager – Debt, JM Financial Asset Management Ltd

  “As expected by market participants, the Reserve Bank of India (RBI) cut the Repo rate by 25 bps, bringing the Repo rate to 6.25%, the Standing Deposit Facility (SDF) at 6.00% and Marginal Standing Facility (MSF) at 6.50%. The Monetary Policy Committee (MPC) retained its stance as ‘Neutral’. The principal driver for the status quo stance were RBIs focus on retaining flexibility to respond to evolving domestic and global macroeconomic conditions. RBI lowered its Gross Domestic Production (GDP) projection for FY24-25 to 6.4% (Vs 6.6% earlier) and stated its GDP expectations for FY 25-26 at 6.7%. RBI retained its FY24-25 Consumer Price Index (CPI) inflation forecast at 4.8% and gave its forecast for CPI in FY25-26 at 4.2%. RBI expressed its view of a resurgent growth and softening in inflation in the coming months, but reiterated the need for vigilance at this juncture, given the risks posed by uncertainty regarding global macroeconomic conditions and commodity prices. As opposed to the expectations of some market participants, RBI did not take any express action on market liquidity but reiterated its commitment to provide sufficient systemic liquidity and proactively take appropriate measures for providing adequate durable liquidity.”

• 13:13 | February 7, 2025

  RBI Monetary Policy Live Reactions: Mr. Avnish Jain, Head – Fixed Income at Canara Robeco Mutual Fund

  The RBI MPC (monetary policy committee), unanimously, under the new leadership of Mr Sanjay Malhotra, cut repo rate by 25 bps to 6.25%. This move was as per market expectations, especially post continuance of fiscal consolidation in the Union Budget. This rate cut happened almost after 5 years, with RBI MPC keeping rates in pause mode for almost 2 years. The only disappointment was that stance was left unchanged at “Neutral”, as RBI MPC chose to retain flexibility in light of global market volatility and trade uncertainty. The governor noted that while global growth has moderated somewhat, disinflation process seems to have stalled, leading to higher uncertainty. The governor further added that, in India, growth inflation dynamics has opened up space to focus on growth. As per RBI estimates, growth for FY2026 is projected at 6.7%, while inflation is expected to drop to 4.2% [AS1] from estimated 4.8% in FY2025. Lower inflation may give RBI more room to reduce policy rates in upcoming policies. The governor reiterated the RBI’s stance on currency, saying that foreign currency intervention was aimed at curbing excess volatility and RBI did not target any specific level or band.

  The markets were disappointed by RBI status quo on stance, as expectations were of stance change to “accommodative”. The markets sold off 3-4 bps immediately post announcement of policy decision. 10Y yield, which dropped to 6.645% is currently trading at 6.69-6.70%. This is likely due to adjustment of long positions as some of market expectations were belied. RBI has already announced Open market operations (OMO) purchase of Rs60,000cr, out of which Rs.20000cr has already been conducted. More OMOs are likely post this, as governor said that RBI is likely to continue to provide durable liquidity to reduce overall systemic liquidity deficit. We remain cautiously optimistic on markets, and expect another 25bps rate cut, likely in next policy, as inflation is likely to trend towards 4% target in coming months. 10Y yield is likely to trade in 6.55%-6.75% range in near term. 

• 13:08 | February 7, 2025

  RBI Monetary Policy Live Reactions: Rajeev Radhakrishnan, CIO - Fixed Income, SBI Mutual Fund

  “A Rate cut that was widely anticipated and priced in was delivered by the RBI MPC. Policy rate reduction was clearly a question of timing in the current context considering the evolving situation on the currency led by global factors and capital flows. At the same time, there has been no change in stance or any other provision of liquidity support. While the rate cut was clearly subjective, the lack of specifics on liquidity could potentially impeded transmission. While yields have moved up a bit, it is anticipated that the RBI would continue to ensure targeted infusion of liquidity over the coming months that should enable yields to stay anchored. Overall, the weaker than anticipated growth over the previous year and projection on CPI for FY26 closer to the target has provided confidence to the RBI to ease rates”

• 13:08 | February 7, 2025

  RBI Monetary Policy Live Reactions: Lakshmanan V, Group President & Head - Treasury (treasurer), Federal Bank

  “The MPC was on reasonably expected lines on all counts - Rate cut, stance and statement on liquidity measures. This decision in my view was a logical extension to the liquidity measures taken in Jan, along with clear assurances given by RBI to support liquidity whenever necessitated going forward. Todays outcome sets the stage for rate cut expectations in April, unless the Inflation and global macro play havoc.”

• 13:06 | February 7, 2025

  RBI Monetary Policy Live Reactions: Garima Kapoor, Economist and Executive Vice President, Elara Securities

  “In the backdrop of weakening growth momentum whilst acknowledging the uncertain global macro-economic backdrop, the RBI’s MPC cut policy repo rate by 25 bps , inline with our expectation. The stance of the policy was retained at neutral reflecting the global volatility which has been affecting EM currencies, particularly the Rupee which has seen sharp depreciation of over 2% this calendar year. The tone of the policy was neutral but the remarks of the Governor regarding some of the macro-prudential draft guidelines suggests that the current RBI dispensation is likely to be more pragmatic regarding implementation of the same. The assurance of liquidity provision was also comforting and suggests measures are likely to continue through OMOs and swaps”.

• 13:06 | February 7, 2025

  RBI Monetary Policy Live Reactions: Ashish Goyal, Co-Founder & CFO, Fibe

  “The RBI’s decision to cut the repo rate, alongside India’s strong economic growth projections of 6.4% for 2024-25, signals a positive shift toward increased consumption and financial stability. With inflation expected to moderate to 4.8% in 2024-25 and 4.2% in 2025-26, household purchasing power will improve, making borrowing more affordable. This will enable salaried individuals to fulfill their goals—whether it’s owning a home, pursuing higher education, or making important life investments. Lower borrowing costs, coupled with rising disposable income, will drive financial confidence, boost spending, and strengthen India’s economic momentum. 

  Further, the RBI’s move to introduce the exclusive ‘bank.in’ and ‘fin.in’ domains is a crucial step in securing digital financial transactions. A verified ___domain for regulated financial entities will provide greater transparency and security, ensuring that borrowers can access credit solutions with confidence. This aligns with our commitment to responsible lending and leveraging technology to create a safer, more seamless borrowing experience for young India.”

• 13:05 | February 7, 2025

  RBI Monetary Policy Live Reactions: Monetary Policy Quote from Mr. Sudipta Roy, Managing Director & CEO, L&T Finance Ltd

  “RBI’s monetary policy decision to cut policy rates by 25 basis points this morning is a statement of unwavering policy support to domestic growth. Combined with last week’s record tax cuts, the policy rate cut will help reinvigorate credit channels in the economy. Assertion of pro-active liquidity support while continuing with a neutral stance is an excellent step to balance the global headwinds and also keeping its options open to respond to evolving financial conditions. As always RBI is ahead of the curve in its focus on consumer protection and mitigating cyber risks. Announcements of a separate ___domain for the financial sector is a welcome step in that direction.”

• 13:05 | February 7, 2025

  RBI Monetary Policy Live Reactions : Manish Kothari, President & Head Commercial Banking, Kotak Mahindra Bank Limited

  The RBI has announced the much expected 25 bps repo rate cut - focused on cautious growth, while remaining aligned to a durable inflation target! Headwinds stemming from global volatility seems to be high on RBI’s radar, as they maintained a neutral stance, while all domestic markers – Inflation, Agri & Mfg. activity, Consumption demand, Liquidity & Financial Markets – are showing a directionally positive flavor. For me, takeaway of the policy is, “be prepared for a smoother albeit slower ride, than a bumpy fast-paced one!”

• 13:04 | February 7, 2025

  RBI Monetary Policy Live Reactions : Jatinder Handoo, CEO, DLAI

  The Reserve Bank of India’s (RBI) decision to reduce the repo rate by 25 basis points is a welcome move, aligning with the broader goal of boosting economic growth through increased household consumption expenditure. With the Union Budget also signaling tax cuts, this rate cut serves as the first step in stimulating growth by lowering borrowing costs.

  As lending rates decline, market sentiment is expected to improve, encouraging private sector investments. This decision will benefit fintech lenders and borrowers alike, facilitating greater access to credit and supporting the expansion of digital lending.

  Additionally, RBI Governor’s emphasis on rising cyber threats and digital risks underscores the importance of strengthening financial sector resilience. The introduction of the ‘fin.in’ ___domain for financial institutions is a proactive step in securing the digital ecosystem. Further, the initiative “Financial Literacy: Women’s Prosperity” is an encouraging move toward greater financial inclusion and empowerment.

  This policy direction reaffirms India’s commitment to fostering a strong, inclusive, and digitally secure financial sector while supporting economic growth.

• 13:04 | February 7, 2025

  RBI Monetary Policy Live Reactions: Dharmakirti Joshi, Chief Economist, Crisil Limited on today’s Monetary Policy

  Long-awaited relief on interest rates:

  The recent easing in consumer price index (CPI) inflation, and the need to remain supportive of economic growth moved Mint Road.

  However, it maintained the policy stance at ‘neutral,’ which gives it flexibility to remain data dependent and respond to exigencies.

  With the Trump Administration in the US shaking up global markets, expect the RBI to be proactive in using liquidity and forex management tools.

  The tariff war set off will have a bearing on policy rate cuts worldwide.

  S&P Global expects the US Federal Reserve to move more gradually, cutting just 25 basis points (bps) in the first half of 2025 after slicing 100 bps between September and December 2024.

  The MPC moves will depend more on domestic inflation. We expect healthy kharif and rabi crop to ease food inflation and likely drive CPI inflation down to 4.4% next fiscal.

  Elevated rates have impacted India’s GDP growth this fiscal. The Budget for next fiscal is mildly supportive for growth, while continuing on the fiscal consolidation path.

  We expect the MPC to cut another 75-100 bps off the policy rate next fiscal.

  Risks from weather and US tariff policy will have a bearing on this.

• 13:00 | February 7, 2025

  RBI Monetary Policy Live: Higher risk weight on bank loans to NBFCs due to higher interconnectedness. We do not see need to re-think higher risk weight on bank loans to NBFCs, RBI Deputy Governor

• 12:58 | February 7, 2025

  RBI Monetary Policy Live : We do not prescribe any business model to banks, RBI Deputy Governor

• 12:55 | February 7, 2025

  RBI Monetary Policy Live : RBI’s thinking on cryptocurrency remains unchanged, RBI Governor

• 12:54 | February 7, 2025

  RBI Monetary Policy Live : Internally reviewing the Bimal Jalan Committee recommendations, RBI Governor

• 12:53 | February 7, 2025

  RBI Monetary Policy Live: Union Budget updates

  RBI Governor: Overall the Budget is excellent, both from growth and inflation perspective. There is a scheme that will be launched for fruits and vegetables. Pulses also has played role in inflation over recent months. 

  I do not think the ₹1 lakh crore tax relief will have upward impact on inflation. 

• 12:49 | February 7, 2025

  RBI Monetary Policy Live : Deposit rate Updates

  RBI Governor: Many outstanding deposits are fixed. Incremental deposits rates will be changed. Will take some time for rate cuts to transmit to deposit rate depending on the tenure. Our job is to ensure transmission happens swiftly. Coming June, MCLR rates may see some revision. 40% of loan book linked to EBLR. 

  RBI Deputy Governor: 40% of loan book linked to EBLR, these loans will be repriced immediately. It typically takes two quarters for transmission of deposit rates. 

• 12:46 | February 7, 2025

  RBI Monetary Policy Live: Balance sheet ratio updates

  RBI Governor: Overall framework of balance sheet ratio is being reviewed - in the context of Bimal Jalan committee recommendations. The state, central govts are managing their liquidity efficiently. But we are not looking at liquidity being provided by govt. 

  DG Rao: Internally we are reviewing Jalan committee recommendations on economic capital framework. 

• 12:40 | February 7, 2025

  RBI Monetary Policy Live : Rupee fluctuation updates

  RBI Governor: The rate rupee settles at is function of demand and supply. The rate that rupee settles at is a function of demand and supply. We should not be looking at day to day volatility of the rupee. We should not be looking at day-to-day rupee volatility, but from a long term perspective. Should be looking at long term movement of the rupee and all other asset classes. 

  Depreciated rupee puts pressure on inflation. Depreciated rupee puts pressure on inflation, but higher worry for us is global uncertainties. Higher worry for us would be global uncertainties, that has direct impact on growth, consumption expenditure which gets deferred. Direct impact on growth, consumption from global uncertainties (including tariff wars).

• 12:37 | February 7, 2025

  RBI Monetary Policy Live : RBI Governor’s stance on its mandate

  RBI Governor: Cannot talk about past RBI actions. RBI as an institution has been able to carry out its mandate. Cost of regulation may not have been heard of, but it has been a factor while taking decisions. It is not only about financial stability, it is also about cost of regulations. Less restrictive stance only for this MPC meeting. This less restrictive policy is only for this MPC meeting. 

• 12:31 | February 7, 2025

  RBI Monetary Policy Live: Cyber security and Misinformation Updates

  DG Rao: From a regulation perspective, limiting the liability of customers in unauthorized electronic banking transactions is in place. 

  Guidelines are already in place for unauthorised loans. Will come out with regulations on the conduct of banks who violate guidelines. 

  RBI Governor: Complaints against misselling will be dealt with strictly ..action will be taken against the entity. If any bank is undertaking the same kind of business through a subsidiary, associate .. then there is conflict of interest. Many banks have legacy issues (having stakes in subsidiaries with similar operations). Will take measures to address these anomalies through consultative process.

• 12:23 | February 7, 2025

  RBI Monetary Policy Live: The latest rupee to dollar rate was taken into account while making inflation projections

• 12:22 | February 7, 2025

  RBI Monetary Policy Live: ECL Updates

  ECL was only a discussion paper, even the draft is not out .. no time frame for implementation. No time frame for implementation of ECL yet. Project finance implementation, 31/3/2026 is the earliest date of implementation. Final project finance guidelines unlikely before April 2026.

  There’s a certain amount of overlap between ECL and project finance. So we are examining, you know, because for project finance, the draft regulations were certainly published. Comments have been received, suggestions have been received. We are examining them, and we’ve come out with something I want to assure all of you that which balances the interests of the public, the depositor the financial stability. Regulatory measures against financial entities taken after careful consideration. 

• 12:19 | February 7, 2025

  RBI Monetary Policy Live: RBI Governor on growth

  Certainly India can achieve 7%-plus growth rate. We will be doing a balancing act on new norms. Will be mindful of costs it will bring in. Do not think LCR implementation will be done before April 2026. Earlier proposal was to introduce new LCR norms from April 2025. Earlier proposal was to introduce new LCR norms from April 2025. 

  There may be lower liquidity requirements for some of the other deposits, based on comments from stakeholders. Will give sufficient timeframe to implemented new norms (on ECL and project finance). 

  Proposed regulatory changes pertaining to liquidity coverage ratio (LCR), expected credit loss (ECL) framework for provisioning by banks. 

• 12:13 | February 7, 2025

  RBI Monetary Policy Live: Inflation Updates

  RBI Governor: The RBI act has given clear mandate. Primary objective is to maintain price stability, keeping in view growth objective.

  Governor on priority: RBI Act has given us a clear mandate.. our primary objective is inflation, price stability, keeping in view growth.

  RBI Governor: Will try to align inflation with target, while supporting growth.’ At present we felt that time has come we can be more supportive of growth.

  RBI Governor: Real GDP rate is 1.5%. 

• 12:10 | February 7, 2025

  RBI Monetary Policy Live: Industry and Economy growth updates

  RBI Governor on growth: All the parameters we analyse regularly ..the high frequency indicators. 

  RBI Governor on growth projections: Agriculture, consumption, Nielsen survey shows 7% consumption growth, PMI levels looks comfortable.

  RBI Governor: Will continue to improve macro indicators including nowcast, forecast.

  Governor on growth forecast: we will continue to improve our macro economic models to give as precise a number as possible. 

• 12:07 | February 7, 2025

  RBI Monetary Policy Live: Liquidity Updates

  RBI Governor: In the last couple of months RBI has tried to provide as much liquidity as required. Tried to provide overnight, durable liquidity. Longer term durable liwuidity of ₹1.5 lakh crore provided. We are always watchful, will be nimble and pro-active in providing liquidity requirements. 

• 12:05 | February 7, 2025

  RBI Monetary Policy Live: RBI MPC press conference starts

• 12:04 | February 7, 2025

  RBI Monetary Policy Live Reactions: Aurodeep Nandi, India Economist, Executive Director at Nomura

  “New Governor, new regime, new cut. We have been arguing for a while now that growth faces strong headwinds, underlying inflation is low and high policy rates have outlived their utility. So the RBI’s policy pivot was long due and in line with our expectations. While Governor Malhotra suggested data dependence in his policy speech, we expect that this is the start to a deep rate cut cycle – we see another 75bp of rate cuts in the pipeline this year.”

• 12:03 | February 7, 2025

  RBI Monetary Policy Live Reactions: Deep Inder Singh – Vice President – Sector Head – Financial Sector Ratings

  Access of SEBI-registered non-bank brokers to NDS-OM.

  The proposed measure will enhance the ease of exit for retail investors in government securities, thereby boosting their overall liquidity. With this improved liquidity, we anticipate greater interest from retail investors in government securities, especially if brokers integrate their trading platforms with NDS-OM.

• 12:03 | February 7, 2025

  RBI Monetary Policy Live Reactions: Neha Parikh – Vice President – Sector Head – Financial Sector Ratings

  Introduction of forward contracts in Government securities. 

  Given the increased focus on annuity and guaranteed return products of life insurance companies, the forward rate agreements (FRAs) volumes in government securities have increased manifold in last few years. However, this has largely been an over the counter (OTC) market. The availability of forward contracts will further improve the transparency in pricing and volumes of such FRAs, which will enable the insurance companies to hedge their interest rate risks in a better way. 

• 12:02 | February 7, 2025

  RBI Monetary Policy Live Reactions: Sachin Sachdeva – Vice President – Sector Head – Financial Sector Ratings

  ICRA on Impact on profitability of banks because of repo rate cut. We expect NIMs as % of the advances will contract by 15 bps for the banks, which will lead to a decline of 0.80% in ROE for banks. Within banks, the impact on private banks is expected to be higher at 20 bps and 0.85% compared to 10bps and 0.76% for public banks. The impact will be higher for private banks because of their higher share of EBLR loans compared to public sector banks.

• 12:01 | February 7, 2025

  RBI Monetary Policy Live Reactions: Anil Gupta – Senior Vice President – Co-Group Head – Financial Sector Ratings

  Proposed regulatory changes in bank regulations such as LCR framework, enhanced provisioning on projects under implementation and expected credit loss framework.

  With focus on balancing risks and efficiency of the banking system, we expect some softening in proposed regulatory changes. This will positively support the risk appetite of lenders and support credit growth amid recent slowing down.

• 12:00 | February 7, 2025

  RBI Monetary Policy Live Reactions: Lakshmi Iyer, CEO-Investment & Strategy, Kotak Alternate Asset Managers Limited

  ”RBI offers a Jaadu Ki Jhappi to markets, offering much expected 25 bps rate cut breaking a 5 year spell.

  No change in stance implies a more shallow rate easing cycle, also keeping all options open given global vulnerabilities.

  We expect markets to focus more on global developments, specifically currency moves.

  Bond yields are likely to remain range bound with every uptick in yield offering a buying opportunity.”

• 11:59 | February 7, 2025

  RBI Monetary Policy Live Reactions: Nilesh Shah, MD Kotak Mahindra AMC

  The RBI assured market on durable liquidity and cut rates by 25 bps as inflation remains within the higher range of mandate. 

  The jugalbandi between monetary policy which is becoming less tight and fiscal policy which is becoming less loose should be supportive for growth and yet managing inflation.

• 11:58 | February 7, 2025

  RBI Monetary Policy Live: RBI strengthens measures to combat digital frauds

  Considering the increased instances of fraud in digital payments, the Reserve Bank of India (RBI) is introducing the ‘bank.in’ exclusive internet ___domain for Indian banks to combat digital frauds, Governor Sanjay Malhotra said today.

  “This initiative aims to reduce cyber security threats and malicious activities like phishing; and, streamline secure financial services, thereby enhancing trust in digital banking and payment services,” he said.

  

  RBI strengthens measures to combat digital frauds

  RBI introduces 'bank.in' ___domain to combat digital frauds, enhance security in digital banking, and introduce AFA for transactions.

• 11:57 | February 7, 2025

  RBI Monetary Policy Live Reactions: Indranil Pan, Chief Economist – YES BANK

  “The MPC chose to bite the bullet and cut the repo rate by 25 bps as inflation is trending down while growth is expected to recover but remains lower than the last year. However, the RBI decided to stick to its “neutral” stance, acknowledging that the global atmosphere remains uncertain due to evolving new dimensions of global trade policy and repeated weather events. As the governor indicated, the MPC will have to be stay watchful of these risks and remain flexible to change course if need be. We think that the RBI will carry through with further rate cuts in April and thereafter. However, this rate cutting cycle may be shallow. Importantly, a study by the RBI had indicated that the ideal real interest rate for the economy should be 100-150 bps. Given that there is now expectation for the economy growth to slump, we think that the RBI could be happy at keeping the real interest rate at 150 bps than at 100 bps. With inflation forecast for FY26 at 4.2%, a 150-bps real rate means that the repo rate can go down to 5.75%. Thus, my base case is for the terminal repo rate at 5.75% (another 50 bps cut from here on) and in the event that the RBI would want to make an insurance cut, the terminal rate can at best be at 5.50% (75 bps from here on). “

• 11:57 | February 7, 2025

  RBI Monetary Policy Live Reactions: Rajani Sinha, Chief Economist, CareEdge

  This decision to lower the policy rate comes amidst moderating growth momentum, increasing challenges from external factors, and a slowdown in inflationary pressures. The decision to retain neutral stance will allow the RBI to adjust its policy according to evolving macroeconomic conditions amid heightened uncertainty, especially from the external sector. The GDP growth for the upcoming year is projected at 6.7%, which is in line with our projection. However, the RBI anticipates a lower inflation rate of 4.2% for FY26, below our projections of 4.5%. On the liquidity front, the governor has assured proactive measures ensuring comfortable liquidity conditions. We expect the RBI to continue upholding favourable money market conditions by elongating tenor and higher quantum of repo auctions, currency swaps, and OMO purchases. These liquidity measures should ensure a smoother transmission of rate cuts in the money market.

  The RBI will remain watchful of the global uncertainties and their impact on the Indian economy. A global trade war could adversely affect India’s growth, inflation, and trade dynamics. However, there is still a lack of clarity on the extent of this impact. Sharp FII outflows and rupee weakening have further complicated the task for the RBI. However, moderating food inflation and benign core inflation will provide some comfort. 

  The governor has stressed on the ‘flexible’ aspect of the inflation targeting framework and improving forecasting models, plausibly signalling a more forward-looking approach towards the policy decisions. 

  This will also prepare the ground for rate cuts in the future. A further rate cut of 25-50 bps is expected in FY26, depending on how growth-inflation dynamics play out. Global factors and their implications for the domestic economy will be critical for the RBI in FY26.

• 11:56 | February 7, 2025

  RBI Monetary Policy Live Reactions: Prasun Gajri - Chief Investment Officer, HDFC Life

  RBI also reassured the markets that they are vigilant on the liquidity situation and will take proactive steps to ensure that the liquidity requirements of the system are met. 

  Overall we believe the policy announcement is an appropriate response to the volatile global macroeconomic environment. RBI also announced the introduction of forward contracts in government securities. This is a welcome move from a life insurance perspective as it will allow us to more efficiently hedge interest rate risks. 

• 11:55 | February 7, 2025

  RBI Monetary Policy Live Reactions: Mr. Nikhil Gupta, Chief Economist, MOFSL Group

  FIRST CUT: A rate cut with no further liquidity supporting measures

  • The RBI MPC cut the repo rate by 25bp to 6.25% and continued with the neutral stance. The Governor committed to take pro-active steps to ensure orderly liquidity conditions. However, didn’t announce any further measures today.
  • The Governor talked of reflecting on the flexible inflation targeting framework that was last reviewed in 2021. Need to keep an eye but no need to speculate at this stage.
  • The Governor stated to refine the building blocks of the macroeconomic outcome framework by using new data, improving nowcasting and forecasting.
  • Inflation forecast for FY25 is kept unchanged at 4.8% and projected to ease further to 4.2% for FY26.
  • The statement didn’t mention FY25 GDP growth forecast (was 6.6% in the previous policy), but lowered its 1Q/2QFY26 growth projections to 6.7%/7%, from 6.9%/7.3% earlier. FY26 growth is projected at 6.7%.

  Overall, the policy decisions were broadly in line with our expectations. A rate cut with no further liquidity measures but a commitment to take pro-active measures.

• 11:54 | February 7, 2025

  RBI Monetary Policy Live Reactions: Unmesh Kulkarni, Managing Director Senior Advisor, Julius Baer India

  “The RBI has cut policy rates by 25 bps while maintaining a neutral stance, with no CRR cut. A more flexible approach to rate targeting suggests the central bank may not wait for CPI to hit 4% before acting—marking a shift from its earlier tightrope strategy.

  Liquidity management remains a priority, with the RBI committed to ensuring sufficient but not surplus liquidity, which could leave markets slightly disappointed. A back-to-back 25 bps rate cut in April is possible but contingent on the evolving liquidity scenario in the coming months.”

• 11:53 | February 7, 2025

  RBI Monetary Policy Live Reactions: Sujan Hajra, Chief Economist & Executive Director, Anand Rathi Group

  In line with our expectations, the RBI cut the policy rate by 25 bps to support domestic growth, as headline inflation is gradually moving towards its target range. Although the global environment remains volatile, the RBI made a prudent decision to lower the policy rate, considering domestic factors while keeping an eye on global developments.

  Recently, the government has also initiated pro-consumption measures, such as tax relief in the FY26 budget, which will positively impact growth. Now, with the RBI joining hands with the central government through its monetary policy to ease borrowing costs, further support to growth is expected. Keeping these positive measures in mind, we continue to remain firm on our 7% GDP growth forecast for FY25.

• 11:53 | February 7, 2025

  RBI Monetary Policy Live Reactions: Debopam Chaudhuri, Chief Economist, Piramal Group

  Encouraging to note an unanimous view among MPC members regarding the need for rate cuts. I hope this will continue over the next few meetings. RBI is leaving no stones unturned to ensure prompt transmission in this phase of rate cuts. Massive liquidity boost over last few weeks resulted in the weighted interbank call rate to close below the repo rate a day before policy announcement. However, in my opinion the transmission will be delayed than usual, especially through bank loans linked to MCLR. It is likely that some of the banks could increase the share of MCLR loans over EBLR, to preserve margins at a time when deposit mobilisation remains sluggish.

• 11:52 | February 7, 2025

  RBI Monetary Policy Live Reactions: Madan Sabnavis, Chief Economist of Bank of Baroda

  “The cut in repo rate and the commentary does indicate that the MPC could be looking more at the inflation-growth dynamics instead of only inflation which was the earlier perception, going forward. Therefore, we could expect more rate cuts based on economic data. We do think the GDP forecast made for next year at 6.7% is very much doable. Inflation at 4.2% will be contingent on both a good monsoon and limited impact of imported inflation. There could be an upside here given global uncertainty, and needs to be watched. The RBI has also clearly stated to the market that it is not targeting an exchange rate and will also ensure orderly liquidity in the market.”

• 11:52 | February 7, 2025

  RBI Monetary Policy Live Reactions: Mr Amit Prakash Singh, Co-Founder & Chief Business Officer, Urban Money (a digital marketplace and a lending platform)

  “The RBI’s decision to reduce the repo rate to 6.25% is a welcome move that enhances liquidity, eases financial burdens on borrowers, and strengthens credit growth. With tax slab reforms, moderating inflation, and steady economic growth, we are looking at a stable economic and income environment—critical for both borrowers and lenders. Ultimately, this rate cut will play a pivotal role in making financing more accessible and fostering a healthier and more inclusive lending ecosystem.”

• 11:51 | February 7, 2025

  RBI Monetary Policy Live Reactions: Mr Piyush Bothra, Co-Founder and CFO, Square Yards

  “The Reserve Bank of India’s decision to cut the repo rate by 25 basis points to 6.25% is a welcome move for the real estate market. This will lower borrowing costs for home buyers, making home loans more accessible and improving buyer sentiment. Additionally, it could enhance liquidity in the banking system, easing access to financing for developers. Combined with recent tax reforms, stable inflation projections and sustained economic growth, it will act as strong tailwinds for the residential real estate sector. Needless to say “acchhe din” for real estate will continue for a long time”

• 11:51 | February 7, 2025

  RBI Monetary Policy Live Reactions: Shrinivas Rao, FRICS, CEO of Vestian

  “The RBI’s 25 bps reduction in the repo rate was anticipated, given the slowdown in GDP growth to 5.4% in the second quarter of FY’25, marking the slowest expansion over seven consecutive quarters. This rate cut, the first in nearly five years, aims to bolster market liquidity. It’s likely to buoy the real estate sector with expectations of major banks trimming mortgage rates. However, it is also expected to exert downward pressure on rupee value in international markets, barring foreign investments.”

• 11:48 | February 7, 2025

  RBI Monetary Policy Live Reactions: Vimal Nadar, Head of Research at Colliers India

  In line with expectations, RBI in its first MPC meeting after the Budget, has decided to reduce the repo rate by 25 basis points to 6.25%, the first rate cut in nearly five years, following a prolonged cycle of rate hike and stability triggered by global uncertainties.

  This comes in the backdrop of easing inflation and moderation in growth prospects. The Central Bank, however, maintains confidence on the robustness of domestic economy and projects the GDP growth rate at 6.7% in FY 2025-26. As housing demand had begun to stabilize after witnessing record sales in the last 2-3 years, this rate cut comes at an opportune time and will have a significant bearing on boosting homebuyer sentiments. 

  The rate cut along with the recent budgetary announcements related to creation of Urban Challenge Fund and tax reliefs under the new regime, are likely to stimulate urban growth and enhance domestic consumption. Higher disposable income and lowering of financing costs stand to benefit homebuyers and developers alike. Furthermore, the recent allocation of INR 15,000 Crores for SWAMIH II fund is likely to expedite completion of stressed projects, boosting liquidity and spur home buying sentiments. Overall, evident tailwinds should boost real estate demand across asset classes in upcoming quarters.

• 11:47 | February 7, 2025

  RBI Monetary Policy Live Reactions: Amit Goyal, Managing Direct, India Sotheby’s International Realty

  The RBI’s 0.25% rate cut after five long years—is the much-needed oxygen for the Indian economy, more particularly for the real estate sector. 

  It lightens EMIs, boosts investments, and signals a pro-growth stance. Coupled with income tax breaks for incomes up to ₹12 lakh in the Union Budget, it widens the path to homeownership for many aspiring buyers.

• 11:46 | February 7, 2025

  RBI Monetary Policy Live Reactions: Bhishek Pandya, Research Analyst, StoxBox

  Today’s monetary policy meeting was in line with our expectations, though a change in stance from “Neutral” to “Accommodative” would have been an icing on the cake. The repo rate cut of 25 basis points, the first in five years and the first by the new Governor, did not allude to the compulsive narrative of market participants as he signalled a more consultative and policy continuity approach going ahead. 

  The key takeaway for us in the meeting was the central bank’s indication of following a flexible approach to the “flexible inflation targeting” model which essentially means that the future monetary policy would be more forward looking. In the current uncertain global and macro context, the inflation and growth forecast for FY26 looks promising, with the RBI putting its weight behind for a proactive liquidity management, evident from its desire for increased participation in the call money market. Going forward, we expect a shallow rate cut cycle from the central bank, with expectations of an additional 25 basis points rate cut in April monetary policy meeting along with additional liquidity measures in the near term considering the expected tight liquidity conditions in March 2025.

• 11:42 | February 7, 2025

  RBI Monetary Policy Live: RBI to shortly launch final directions for forward contracts in G-secs; Governor Sanjay Malhotra

  The Reserve Bank of India (RBI) will soon launch final directions for allowing forward contracts in Government securities (G-sec) to enable further market development, Governor Sanjay Malhotra said today.

  “Such forward contracts will enable long-term investors such as insurance funds to manage their interest rate risk across interest rate cycles. They will also enable efficient pricing of derivatives that use bonds as underlying instruments,” he said.

  Over the past few years, the RBI has been expanding the suite of interest rate derivative products available to market participants to manage their interest rate risks. In addition to interest rate swaps, products such as interest rate options, interest rate futures, interest rate swaptions, forward rate agreements are available to market participants.

  

  RBI to shortly launch final directions for forward contracts in G-secs: Governor Sanjay Malhotra

  RBI to launch forward contracts for G-sec to manage interest rate risk and enhance market efficiency, Governor Malhotra announces.

• 11:41 | February 7, 2025

  RBI Monetary Policy Live Reactions: Girish Kousgi, MD & CEO, PNB Housing Finance

  “The RBI’s decision to cut the repo rate by 25 basis points the first rate cut since 2020 is a significant move that will provide much-needed relief to home loan borrowers and give a strong boost to the housing sector. Lower interest rates directly enhance affordability, making home loans more accessible for aspiring homeowners and first-time buyers.

  This decision aligns with the Finance Ministry’s recent budget announcement, which emphasized the need for fiscal and monetary policy to work in tandem to support economic growth. The rate cut is expected to drive renewed demand in the housing market, boosting overall sentiment and encouraging investments in the real estate sector.

  We remain committed to supporting homebuyers with competitive loan offerings and seamless financing solutions, both in-person and digital, ensuring they can achieve their dream of homeownership. This rate cut, combined with the recent income tax relief, will further strengthen consumer confidence and contribute to sustained growth in the housing finance sector.”

• 11:40 | February 7, 2025

  RBI Monetary Policy Live Reactions: Vivek Iyer, Partner and Financial Services Risk Leader, Grant Thornton Bharat

  RBI has acknowledged that cyber security is an emerging risk and has asked banks to enhance their governance frameworks to include testing and monitoring of cyber related controls, strengthen their cyber incidence response and have a robust operational resilience framework.

• 11:38 | February 7, 2025

  RBI Monetary Policy Live Reactions: Radhika Rao, Executive Director and Senior Economist

  The RBI monetary policy committee voted unanimously for a 25 bps rate cut, backed by a cautious view on growth while winter disinflation in food is expected to limit price stability risks. Notably, an emphasis on the flexibility of the inflation targeting framework suggests the MPC might be more tolerant of intermittent modest supply driven volatility. The GDP forecasts point to growth staying below 7% this year and the next.

  This sees the RBI joining regional central banks who have given higher weightage to domestic priorities, viewing volatility in their currency and bond markets as driven by global triggers. The MPC has refrained from an outright dovish signal by maintaining the stance at neutral. The recent rupee depreciation was not a hurdle for the policymakers, with intervention tools likely to be tapped to defend the currency vs dollar strength. We maintain our call for another 25 bps cut in repo rate in April.

• 11:37 | February 7, 2025

  RBI Monetary Policy Live Reactions: Binod Kumar, MD & CEO, Indian Bank

  The MPC’s focus on liquidity is a good and heartening thing, reflecting the government and RBI’s concern in this area. Given the government’s initiatives during the budget and the anticipated increase in household expenditure, we foresee optimistic GDP growth.

• 11:36 | February 7, 2025

  RBI Monetary Policy Live Reactions: Kanika Singh Chief Risk Officer– IMGC

  “The Reserve Bank of India has cut the repo rate by 25 basis points, to support economic growth while balancing the macro and geopolitical factors. Retail inflation has moderated, and the RBI had recently announced liquidity support of Rs 1.5 lakh crore, this could well support its decision to start the monetary easing cycle. Additionally, the recently announced tax relief and benefits in the Union Budget are expected to positively impact the economy by boosting consumption and investment. As a result, loans will become more affordable, providing much-needed relief to individuals. Timely transmission of the rates will be key to make loans affordable.”

• 11:31 | February 7, 2025

  RBI Monetary Policy Live : RBI to further refine flexible inflation targeting framework, Governor says

  The Reserve Bank of India (RBI) is aiming to further refine the building blocks of flexible inflation targeting (FIT) framework by making advances in the use of new data and developing more robust models, Governor Sanjay Malhotra said at his first post monetary policy committee (MPC) meeting statement today.

  “We will strive to further refine the building blocks of this framework by making advances in the use of new data, improving nowcasting and forecasting of key macroeconomic variables and developing more robust models,” he said. Under the FIT framework, the RBI targets maintaining headline CPI inflation at 4 per cent, (+/-2) percent.

  

  RBI to further refine flexible inflation targeting framework, Governor says

  RBI aims to refine FIT framework with new data, robust models to maintain 4% CPI inflation target.

• 11:26 | February 7, 2025

  RBI Monetary Policy Live Reactions: Mr. Sujan Hajra, Chief Economist & Executive Director, Anand Rathi Group

  RBI Cuts the Policy Repo Rate by 25 bps: 

  • In line with our expectations, the RBI, in its first MPC meeting of 2025, started easing monetary policy as the MPC unanimously decided to reduce the policy rate by 25 bps from 6.5% to 6.25%. The decision to cut the rate came from the RBI after nearly five years. While delivering the rate cut, the MPC highlighted that its policy stance will continue to remain neutral.

  • The Standing Deposit Facility (SDF) rate was also reduced by 25 bps to 6% from 6.25%

  • Given that headline inflation is gradually moving towards the RBI’s target range, with easing pressure from food prices, the RBI projected headline inflation for FY25 at 4.8%, while the projection for FY26 remains unchanged at 4.2%.

  • While the RBI maintained its FY25 growth forecast at 6.4%, it revised India’s FY26 GDP growth projection from 6.6% to 6.7%.

  • Given the prevailing economic policy uncertainty amid trade tensions, an upside risk to inflation remains. Therefore, the RBI stated that it will continue to maintain a neutral stance while keeping a close watch on the global environment.

  Our View: 

  In line with our expectations, the RBI cut the policy rate by 25 bps to support domestic growth, as headline inflation is gradually moving towards its target range. Although the global environment remains volatile, the RBI made a prudent decision to lower the policy rate, considering domestic factors while keeping an eye on global developments.

  Recently, the government has also initiated pro-consumption measures, such as tax relief in the FY26 budget, which will positively impact growth. Now, with the RBI joining hands with the central government through its monetary policy to ease borrowing costs, further support to growth is expected. Keeping these positive measures in mind, we continue to remain firm on our 7% GDP growth forecast for FY25.

• 11:23 | February 7, 2025

  RBI Monetary Policy Live Reactions: Kishore Lodha, Chief Financial Officer, UGRO Capital

  “The much-awaited rate cut has finally arrived, easing interest rate pressure on the industry as a whole and providing relief to home loan borrowers. However, liquidity has turned negative, which remains a cause for concern. The RBI is closely monitoring the situation and implementing measures to mitigate the risk. Inflation has moderated, and the RBI expects it to average 4.2% next year, creating further room for additional rate cuts. Key factors to watch include geopolitical developments, Rabi and Kharif crop yields, GDP growth, and inflation trends.”

• 11:13 | February 7, 2025

  RBI Monetary Policy Live Reactions: Amit Bhagat, Co-Founder, CEO and MD, ASK Property Fund

  “Home sales for the affordable and lower mid income segment have been affected by declining affordability. Impact of increasing prices in the recent past and elevated interest rates have impacted the housing sales in this segment as it is quite sensitive to movements in interest rates and prices. A rate cut was definitely the need of the hour to uplift the sentiment and define a direction in the near future.

  RBI’s rate cut along with Government’s Budget initiatives like providing tax benefits across tax slabs, provisions on self-occupied houses, SWAMIH Fund 2, etc will aid in maintaining the housing demand momentum and drive a sustained sales growth.”

• 11:11 | February 7, 2025

  RBI Monetary Policy Live Reactions: Vikram Chhabra, Senior Economist, 360 ONE Asset

  “The RBI’s decision to cut the repo rate by 25 basis points aligns with our expectations. This move is a logical progression following the shift to a neutral policy stance in October 2024 and the Cash Reserve Ratio (CRR) reduction in December 2024. Economic growth has been disappointing, with repeated downward revisions to estimates, and requires policy support. The budget has provided essential fiscal support while upholding fiscal discipline, and the RBI has reinforced this by initiating monetary easing.

  The inflation outlook appears favorable due to healthy kharif season production and encouraging prospects for the rabi season, providing the comfort to prioritize growth. We expect the RBI to cut rates by another 50–75 basis points in the current cycle. Additionally, we expect the RBI to maintain liquidity near neutral, using Open Market Operations (OMOs), FX swaps, or term variable rate repos as needed.”

• 11:10 | February 7, 2025

  RBI Monetary Policy Live Reactions: Vivek Iyer, Partner and Financial Services Risk Leader , Grant Thornton Bharat on RBI’s Monetary Policy

  The choice faced with the new RBI governor was a very difficult one especially that this had to be made right after taking over the reigns of the institution. Balancing growth and inflation dynamics has never been an easy choice and never will be. There are pros and cons to every choice, but I believe that the way rate reduction has been announced while also reiterating that the stance continues to be neutral is something that must be appreciated. The rbi does acknowledged that they are going to be keep going back to the drawing board every 2 months to see where we stand and take a nuanced view. A difficult choice for someone to make within one month of joining, but kudos to the step that benefits the middle class.

• 11:09 | February 7, 2025

  RBI Monetary Policy Live Reactions: Shanti Ekambaram, deputy managing director of Kotak Mahindra Bank

  “In line with market expectations the RBI announced a 25 Bps Repo rate cut – this after nearly 5 years. Interesting takeaway was the need for considering “ flexible inflation targeting” , which will help balance inflation and growth. The stance however was retained at Neutral more due to potential risks from volatile global markets. GDP growth in FY’26 is estimated at 6.7%and average inflation at 4.2%. Expect RBI to remain vigilant and do what it takes to ensure adequate liquidity to support growth but also keeping an eye on inflation. Future action will depend on global headwinds and local macro economic factors” 

• 11:08 | February 7, 2025

  RBI Monetary Policy Live Reactions: Dr. Samantak Das, Chief Economist and Head of Research and REIS, India, JLL

  The Reserve Bank of India’s 25 basis point repo rate cut marks a pivotal shift, deftly aligning monetary policy with the government’s fiscal strategies to reignite consumption. 

  This decisive action comes at a critical juncture, addressing the challenges of decelerating GDP growth, dampened urban consumption, and stagnant private capital expenditure. 

  By easing the cost of capital, the RBI is injecting vital momentum into the economic engine, setting the stage for a resurgence in spending and investment across the board.

  The rate cut – the first in nearly 5 years – sends a clear signal that a cohesive policy framework is in play, prioritizing growth while keeping an eye on risks.

  This move underscores the RBI’s confidence in maintaining inflation within its target range, reflecting a balanced approach to fostering growth without compromising price stability.

  For the real estate sector, the implications are profound and far-reaching. We anticipate this rate cut to be a catalyst, igniting homebuyer sentiment, enhancing affordability, and potentially unleashing a new wave of demand in the housing market.

  While 2024 was the best year ever in terms of sales and market activity, rising prices were beginning to have a lagging effect on market momentum, as evidenced by a decline in Q4 2024 sales numbers. 

  The rate cut, coupled with budget tax benefits favouring mid-income buyers, will provide additional support to homebuyers and help sustain market buoyancy.

  The resilience of India’s residential real estate sector has been remarkable. Despite economic headwinds, 2024 saw residential sales soar to unprecedented heights, surpassing the 3-lakh unit milestone. 

  With this rate cut serving as a tailwind to the existing demand momentum, we project 2025 to be a landmark year. Sales could well eclipse 2024 levels, setting new records and redefining the market’s potential.

  As we look ahead, the outlook for both homebuyers and investors appear increasingly promising, with this move potentially ushering in a new era of opportunity in residential real estate.

• 11:06 | February 7, 2025

  RBI Monetary Policy Live : Summary of RBI’s Monetary Policy Statement (Feb 7, 2025)

  Key Monetary Policy Decisions:

  1. Repo Rate Cut: The Monetary Policy Committee (MPC) reduced the policy repo rate by 25 basis points to 6.25%.

  2. Other Adjustments: Standing Deposit Facility (SDF) rate: 6.00%

  3. Marginal Standing Facility (MSF) rate & Bank Rate: 6.50%

  4. Monetary Policy Stance: Neutral, with a focus on aligning inflation with the 4% target while supporting economic growth.

  Growth & Inflation Outlook:

  1. Global Economy: Below-average growth, though trade expansion continues. Challenges include geopolitical tensions, a strong US dollar, and financial market volatility.

  2. India’s Economic Growth (2024-25): GDP Growth Estimate: 6.4% YoY, driven by private consumption recovery.

  3. Sectoral Trends: Services & Agriculture: Growth supportive.

  4. Industry: Sluggish performance.

  India’s Economic Growth (2025-26):Projected GDP Growth: 6.7%; (Quarterly estimates: Q1 - 6.7%, Q2 - 7.0%, Q3 & Q4 - 6.5% each).

  Growth drivers:

  1. Strong household consumption (helped by tax relief in Union Budget 2025-26).

  2. Improved investment cycle (higher capacity utilization & government capital expenditure).

  3. Resilient services exports.

  Risks: Geopolitical tensions, trade policy shifts, commodity price volatility.

  Inflation Outlook:

  • Headline Inflation: Declined from 6.2% in Oct 2024 to lower levels in Nov-Dec 2024 due to falling food inflation.

  • Projections for 2024-25:CPI Inflation: 4.8% (Q4: 4.4%)

  • Projections for 2025-26:CPI Inflation: 4.2%

  • Quarterly estimates: Q1: 4.5%, Q2: 4.0%, Q3: 3.8%, Q4: 4.2%

  Key Factors: Softening food inflation (good kharif & rabi crop, falling vegetable prices). Moderate core inflation, but global financial volatility, energy prices & climate risks remain concerns.

  Policy Rationale & Future Guidance: 

  • Why Rate Cut?: Falling inflation & below-trend GDP growth gave MPC room to support growth.
  • Cautionary Stance: Global trade uncertainties, financial volatility & weather risks require the MPC to stay watchful.

  • Next Steps: MPC to publish meeting minutes on Feb 21, 2025.

  • Next MPC meeting: April 7-9, 2025.

  Key Takeaways:

  • Rate cut of 25 bps to 6.25% to boost growth.
  • GDP expected to grow at 6.7% in 2025-26, driven by consumption & investment.
  • Inflation projected at 4.2% for 2025-26, barring major shocks.
  • Global risks (geopolitics, trade policy, financial volatility) remain key concerns.
  • Neutral stance maintained to allow flexibility in response to changing conditions.
• 11:01 | February 7, 2025

  RBI MPC Meeting: Live to resume at 12 pm

  We will be covering the news conference of the RBI Governor, Mr Sanjay Malhotra at 12 pm

• 10:49 | February 7, 2025

  RBI Monetary Policy Live Reactions: Anuj Puri, Chairman - ANAROCK Group

  In terms of the impact on the housing sector of the RBI’s decision to reduce the repo rates by 25 bps, this piggybacks on the recent taxation benefits announced in the Union Budget. As such, it is undeniably a major boost to the homebuyers, particularly for affordable housing buyers. Many first-time homebuyers who had been hesitating to take the plunge are likely to make their move now as home loan rates will reduce - as long as banks pass on the key benefits to buyers.

  This dovetails well with recent trends in the housing market, which continues to see strong momentum. Reduced home loan rates can help the overall positive consumer sentiment. Given that housing prices have risen across the top 7 cities in the last one year, this breather is welcome and timely. As per ANAROCK Research, 2024 saw average housing prices rise by anywhere between 13-30% in the top 7 cities, with NCR recording the highest 30% jump. The average prices in top 7 cities collectively stood at approx. INR 7,080 per sq. ft. in 2023-end, while in 2024-end it increased to approx. INR 8,590 per sq. ft. – a collective increase of 21% annually.

  Commercial real estate, especially office spaces, can also benefit from lower borrowing costs for businesses, and lower rates also make REITs more appealing since investors look for stable returns in a falling interest rate environment.

  That said, the rate cut may be less effective by rising property prices if inflation remains as high as it is now. Also, it remains to be seen if banks pass on the full benefit to borrowers in a timely and seamless manner.

• 10:44 | February 7, 2025

  RBI Monetary Policy Live: RBI cuts repo rate to 6.25% after two years, cites slowing growth and easing inflation

  The six-member monetary policy committee (MPC) revised the repo rate for the first time in two years, voting unanimously to cut it by 25 basis points from 6.50% to 6.25% in view of easing retail inflation and slowing growth.

  The rate cut comes even as the Rupee continues to reel to under pressure from global tariff wars.

  The MPC decided unanimously to reduce the policy repo rate to 6.25% at its meeting, which is the committee’s last one for FY25 and new Governor Sanjay Malhotra’s first after he assumed charge of RBI on December 11, 2024, held from February 5 ^th to 7th.

  The MPC also decided unanimously to continue with the ‘neutral’ stance and to remain unambiguously focused on a durable alignment of inflation with the target, while supporting growth.

  

  RBI MPC Meeting: RBI cuts repo rate to 6.25% after 2 years

  The six-member monetary policy committee (MPC) revised the repo rate for the first time in 2 years, voting unanimously to cut it by 25 basis points from 6.50% to 6.25% in view of easing retail inflation and slowing growth.

• 10:39 | February 7, 2025

  RBI Monetary Policy Live Reactions: Upasna Bhardwaj, Chief Economist, Kotak Mahindra Bank

  “The MPC’s decision to cut Repo rate by 25bp and maintain neutral stance is completely in line with our expectations. The softening growth and inflation outlook has provided room to monetary easing. Further from here , we expect the RBI will need to monitor liquidity conditions more closely to ensure liquidity stance remains in sync with the policy stance.”

  Anu Aggarwal, President & Head Corporate Banking, Kotak Mahindra Bank said, “The Reserve Bank of India’s decision to reduce the repo rate by 25 basis points underlines its contribution in stimulating economic growth. The monetary policy decision will further support the Union Budget’s focus on boosting demand which will together reinforce growth and confidence in the economy. The RBI’s decision has come at an opportune time as India attempts to gets into it high growth trajectory as against the 6.4% of FY25.”

• 10:38 | February 7, 2025

  RBI Monetary Policy Live Reactions: Bhavik Vasa, Founder GetVantage, PSL Association of India

  “The Monetary Policy Committee’s decision to cut the repo rate marks a crucial step in improving liquidity and reducing the cost of capital for India’s MSMEs. Easier access to credit at lower rates will empower small businesses to invest in growth, drive employment, and strengthen economic resilience. At the Priority Sector Lending Association of India, we see this as a big step toward making credit more accessible for MSMEs, helping them leverage digital tools and data for growth. A strong MSME sector is key to India’s economic future, and this move by the RBI is a positive step in that direction.”

• 10:29 | February 7, 2025

  RBI Monetary Policy Updates: MPC felt less restrictive monetary policy better at this juncture

• 10:29 | February 7, 2025

  RBI MPC Meet Live: RBI will set up a working group to do a comprehensive review of trading of settlement timings of markets regulated by RBI

• 10:28 | February 7, 2025

  RBI Monetary Policy Live: To manage interest rate risk, to include forward contracts in government securities and Must develop robust responses and mechanisms

• 10:25 | February 7, 2025

  RBI MPC Meeting Live: Digital security updates

  RBI has been taking various measures to enhance digital security in banking, payments system. To extend additional factor of authentication to international digital payments to offshore merchants. 

  Request banks to mitigate cyber risks. I would urge banks and NBFCs to continuously improve preventive and detective controls to mitigate cyber risks. 

• 10:25 | February 7, 2025

  RBI MPC 2025 Live Updates: Credit deposit ratio updates

  The financial the system level, financial parameters for the scheduled commercial banks continue to be healthy. The credit deposit ratio for the banking system at the end of January 2025 was a 80.8% broadly similar to that on 30th September 2024. 

• 10:21 | February 7, 2025

  RBI MPC Meet 2025: Liquidity Updates

  Liquidity, as measured by the average net position under the liquidity adjustment facility did turn into a deficit during December, 2024, and January. 

  This drainage of liquidity is mainly attributed to the to advanced tax payments in December, 2024, you are aware, there are quarterly advanced tax payments to be made.

  I would like to mention over here that we have observed that some banks are reluctant to lend in the uncollateralized call money market.

  They are passively parking funds to the Reserve Bank. I take this opportunity to all the banks towards them to actively trade amongst themselves in this uncollaterised call money market so as to make it deeper and vibrant for better signal extraction from the weighted average call money rate. 

• 10:21 | February 7, 2025

  RBI MPC Live: Our interventions in the forex market focus on smoothening excessive and disruptive volatility

• 10:21 | February 7, 2025

  RBI Guv: Reserve Bank’s exchange rate policy over the years has remained very, very consistent. Our stated objective is to maintain orderliness and stability without compromising market efficiency

• 10:20 | February 7, 2025

  RBI MPC 2025 updates: Overall India’s external sector remains resilient as key indicators stay robust

• 10:20 | February 7, 2025

  RBI Monetary Policy Live Updates: Forex reserve stood at $ 630 billion as of Jan end providing export cover for 10 months

• 10:19 | February 7, 2025

  RBI Monetary Policy Live : CPI Inflation updates

  RBI MPC Meeting Live: CPI inflation estimated at 4.8% in FY25. CPI projected at 4.2% in FY26. FY26 CPI - 4.2%. 

  Q1 FY26 CPI : 4.5%, Q2 4%, Q3 3.8%, Q4 - 4.2%

• 10:19 | February 7, 2025

  RBI Monetary Policy Live : Economic Growth Updates

  Q1 - 6.7%, Q3 - 6.5%, Q4 6.5%, 

  Headline inflation, after moving above the upper tolerance band in October, has since registered the sequential moderation in November and December. 

• 10:17 | February 7, 2025

  RBI Governor: FY26 GDP growth estimated at 6.7%, Real GDP growth for next year to be around 6.7%

• 10:17 | February 7, 2025

  RBI Monetary Policy Live : Economy Demand Updates

  PMI services decline from recent peak. Rural demand continues to be on an uptrend. urban demand is subdued with high frequency indicants providing mixed signals. Govt consumption expenditure is expected to remain modest. Govt policy support sugar well for growth in fixed investment. 

• 10:15 | February 7, 2025

  RBI Monetary Policy Live : Economy Updates

  Eco activities expected to improve in current year ..agri activities remain upbeat..manufacturing activities to improve gradually. Mfg activity is expected to recover gradually in the second half of the year. Mining and electricity are rebounding ..business expectations are healthy.

  Mining and electricity are rebounding from monsoon related disruptions. Services sector activity continues to be resilient. 

• 10:13 | February 7, 2025

  RBI MPC Live:: Going forward econ activity is expeced to improve in the coming year

• 10:13 | February 7, 2025

  RBI MPC Live: Excessive volatility in global financial markets uncertainty of global trade policies pose risk to growth and inflation outlook accordingly it decided to continue with neutral stance

• 10:12 | February 7, 2025

  RBI Monetary Policy Live : Inflation Updates

  The MPC noted inflation has declined supported by favouralbe outlook on food. Inflation to further moderate in FY26. Growth is expected to recover from Q2 .. but much below from last year.

• 10:11 | February 7, 2025

  RBI MPC Live: MPC unanimously decided to continue with neutral stance

• 10:11 | February 7, 2025

  RBI Monetary Policy News: MPC decided unanimously to cut repo rate by 25 bps. To cut policy rate by 25 bps to 6.25%. SDF rate be at 6%, MSF and bank rate at 6.5%

• 10:10 | February 7, 2025

  RBI Monetary Policy Live : The policy rate will reduce rate by 25 bps

• 10:09 | February 7, 2025

  RBI Governor: USD has strengthened, bond yields have hardened. Lingering geopolitical tensions and elevated trade and policy uncertainties have exacerbated financial market stability

• 10:09 | February 7, 2025

  RBI Monetary Policy Live : Global economic backdrop remains challenging. Progress on global inflation stalling

• 10:08 | February 7, 2025

  RBI MPC 2025 Live: Where regulations have major implications, implementation will be done in a phased manner. Global economy growing below historical average

• 10:08 | February 7, 2025

  RBI Governor: Want to reassure all stakeholders we will continue with consultative framework in framing regulations

• 10:07 | February 7, 2025

  RBI MPC Meeting Live:: We will continue to refine, strengthen prudential and conduct related framework. We will use the flexibility embedded in the FIT framework for our policy making

• 10:06 | February 7, 2025

  RBI Monetary Policy Live: Strive to further refine building blocks of flexible inflation targeting mechanism. We will develop more robust models for inflation

• 10:05 | February 7, 2025

  RBI Monetary Policy Live: RBI Gov says average inflation lower post introduction of the framework. We will strive to refine the building blocks of the inflation framework

• 10:04 | February 7, 2025

  RBI Monetary Policy Live: RBI Gov says Flexible inflation targeting mechanism served Indian economy well

• 10:02 | February 7, 2025

  RBI Monetary Policy Live: RBI Governor Sanjay Malhotra begins his speech, her mentions that the MPC resolution affects a large number of people

• 10:00 | February 7, 2025

  Stock Market live updates: Stock markets trade lower in volatile trade ahead of RBI policy decision

  Benchmark indices Sensex and Nifty traded lower in a volatile trade on Friday morning ahead of the RBI’s monetary policy decision.

  “Today, market focus shifts to the RBI MPC meeting outcome,” Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.

  New RBI Governor Sanjay Malhotra, who is chairing his first Monetary Policy Committee (MPCC) meeting, will announce the decision of the six-member panel on Friday morning, amid widespread expectations of 25 basis points reduction in interest rate after a gap of nearly five years.

  After beginning the trade on a positive note, the 30-share BSE benchmark Sensex failed to carry forward the momentum and declined 87.32 points to 77,970.84 during the early trade. The NSE Nifty dipped 32.6 points to 23,570.75. (PTI)

• 09:55 | February 7, 2025

  RBI Monetary Policy Live: Monetary Policy Statement by Shri Sanjay Malhotra, RBI Governor- February 07, 2025
• 09:54 | February 7, 2025

  RBI Monetary Policy Live: The RBI’s monetary policy announcement will begin in 10 minutes at 10:00 am IST

• 09:39 | February 7, 2025

  RBI Meeting 2025 Live: What will happen at the MPC meeting?

  The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) is meeting on Friday, February 7, 2025. 

  A report by businessline says with liquidity injection measures, RBI has prepared the ground to facilitate a rate cut by MPC.

  The report quoted economists as saying if one considered the recent liquidity injection measures by RBI, it had already prepared the ground for the Monetary Policy Committee to go in for a shallow rate cut at its meeting on February 7 .

  The report went on to say that with retail inflation easing to a four-month low of 5.22% in December 2024 from 5.5% in November 2024, and the second quarter (Q2FY25) GDP growth sliding to a seven-quarter low of 5.4 per cent from 6.7 per cent in the first quarter, there were expectations that MPC would prioritise growth, which meant a rate cut.

  

  RBI MPC Meeting Feb 2025: Date, time, expectations and more...

  RBI's MPC meeting on February 7 may result in a rate cut due to recent liquidity measures and economic indicators.

• 09:37 | February 7, 2025

  Currency Market live today: Rupee plunges 16 paise to close at record low of 87.59 against US dollar

  The Rupee plunged 16 paise to close at an all-time low of 87.59 against the US dollar on Thursday, as rising odds of a rate cut by the Reserve Bank of India in its monetary policy meeting on Friday pressurised the rupee.

  Forex traders said the Indian rupee plunged to fresh record lows amid weak domestic markets and importer demand for dollars.

  Moreover, risk aversion in global markets amid ongoing uncertainty over US trade tariffs may further weigh on the rupee.

  At the interbank foreign exchange, the rupee opened at 87.54 and slipped further to an all-time intraday low of 87.60 against the greenback in initial deals.

  The domestic unit finally settled for the day at 87.59 against the greenback, registering a plunge of 16 paise from its previous close.

  

  Rupee recovers 26 paise from all-time low level to 87.33 against US dollar

  Indian rupee hits record low against US dollar as RBI rate cut looms, global trade tensions persist.

• 09:28 | February 7, 2025

  RBI Monetary Policy Live: RBI likely to cut repo rate by 25 bps in Governor Sanjay Malhotra’s first policy move

  The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) is set to announce its first monetary policy under new Governor Sanjay Malhotra on Friday.

  Experts anticipate that the central bank may cut the repo rate by 25 basis points (bps) to support economic growth while keeping inflation under control.

  According to a Bank of Baroda report, inflationary pressures have eased, primarily due to a decline in the prices of essential vegetables such as tomatoes, onions, and potatoes. This improved supply scenario has contributed to lower volatility in the Consumer Price Index (CPI), providing the RBI with some room for a measured rate cut.

  

  RBI MPC Meeting 2025: RBI likely to cut repo rate by 25 bps: Gov Sanjay Malhotra

  The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) is set to announce its first monetary policy under new Governor Sanjay Malhotra on Friday.

• 09:19 | February 7, 2025

  RBI MPC Meeting Live: New RBI Governor’s Sanjay Malhotra’s first MPC meeting; may cut repo rate

  The newly-appointed Reserve Bank of India (RBI) Governor Sanjay Malhotra is chairing his first Monetary Policy Committee (MPC) meeting starting Wednesday.

  The RBI MPC meeting has started with expectations of a 25 basis-points rate cut, which will be the first in five years . It has kept the repo rate (short-term lending rate) unchanged at 6.5 per cent since February 2023. 

  RBI had last cut the repo rate by 40 basis points to 4 per cent in May 2020. 

  

  RBI MPC Meeting 2025: RBI cuts repo rate by 25 bps as expected

  The monetary policy committee (MPC) that met under the new RBI Governor, Mr Sanjay Malhotram revised the repo rate from 6.50% to 6.25%.

• 09:05 | February 7, 2025

  RBI MPC News Live Updates, Watch | New RBI guv Malhotra to announce rate decision on Fri; 25-bps reduction expected
• 08:56 | February 7, 2025

  RBI MPC meeting live: Ajay Garg, CEO, SMC Global Securities on expectations from RBI monetary policy

  RBI is expected to cut the repo rate by 25 basis points to 6.25% from the current rate of 6.50% in the Monetary policy meeting on February 7. The last rate cut was in May 2020 of 40 basis points to revive the economic growth affected by the pandemic. The cut in the repo rate means that the RBI will lend the money to the banks at a lower rate which in turn provides a benefit to the banks to charge lower interest rates from borrowers. This increases the money supply in the economy, strengthens liquidity, encourages borrowing, and boosts consumer demand.

  The main reason why RBI will likely cut the key rate this time is the expectation of an easing of CPI to 4.5% - 4.7% in January 2025 from 5.2% in December 2024. For FY25, the real GDP growth is estimated at 6.4% which is the lowest growth rate in the last four years. Also, the GDP is expected to grow between 6.3% to 6.8% in FY26. To accelerate the GDP growth, there is an anticipation that the RBI will take the rate-cut route.

  The increase in tax rebate to ₹12 lakhs in the Union Budget for increasing the disposable income of the middle-class population and the RBI’s recent liquidity measures of OMO and VRR auctions, show a commitment that India is looking to enhance liquidity, rejuvenate sluggish demand, and foster economic growth. However, the falling rupee is a key trigger that could influence the RBI’s decision as further cuts can put pressure on the Indian rupee and increase outflows from the country. Globally, the tariff tensions and the strengthening dollar index can also affect RBI’s monetary policy outcome on Friday.

• 08:50 | February 7, 2025

  RBI Monetary Policy Live: Should RBI acquiesce to rate cut demands?

  Whether RBI submits to the mounting pressure for rate easing remains to be seen. But in the context of structural growth dampeners, counter-cyclical easing will be futile.

  First, the decline in CPI inflation to 5.2 per cent in December 2024 from 6.2 per cent in May 2024 has been extrapolated to predict a sub-4 per cent inflation soon. For the RBI, it will be important to consider medium-to-long-term performance. Over the past 24 months, inflation has averaged 1.25 per cent above the 4 per cent target and in 59 out of the 61 months since January 2020 -- higher than the target.

  Click here to read more

• 08:39 | February 7, 2025

  RBI Monetary Policy Live: RBI seen cutting rates for first time since May 2020

  The Reserve Bank of India is widely expected to cut interest rates for the first time in nearly five years in Governor Sanjay Malhotra’s first monetary policy review on Friday, aiming to boost economic growth which is seen falling to a four-year low.

  Over 70% of respondents, 45 of 62, in a Jan. 22-30 Reuters poll forecast the RBI would cut its key repo rate by 25 basis points to 6.25% at the conclusion of its Feb. 5-7 meeting, while others expect it will keep rates unchanged, mostly because of above-target inflation.

  Read more

• 08:08 | February 7, 2025

• 07:41 | February 7, 2025

  RBI MPC Meeting 2025 live: Sensex, Nifty eye RBI policy decision; flat opening expected

  Stock markets are expected to open flat on Friday, as all eyes are on the RBI meeting outcome on rates. The newly appointed Governor, Sanjay Malhotra, is expected to announce the committee’s decision at 10:00 a.m. 

  Traders seem to have opted for a cautious approach, preferring to book some long positions around this key level ahead of the RBI policy decision and the Delhi state election results, both of which could induce volatility, said Rajesh Bhosale, Technical Analyst, Angel One Ltd

  Read more

• 07:05 | February 7, 2025

  RBI MPC Meeting 2025 Live: RBI to cut rates to boost economy as inflation slows

  India is expected to cut interest rates for the first time in nearly five years on Friday to provide stimulus to its sluggish economy, with easing price pressures giving policymakers more room to manoeuvre.

  The Monetary Policy Committee (MPC), which consists of three Reserve Bank of India members and three external members, is widely tipped to reduce the repo rate by 25 basis points to 6.25%, after having kept it unchanged for eleven straight meetings. - Reuters

• 18:28 | February 6, 2025

  RBI MPC Meeting 2025: Stock Markets slip ahead of RBI policy

  Equity markets retreated for the second consecutive session on Thursday as investors remained cautious ahead of the Reserve Bank of India’s monetary policy decision, with retail major Trent witnessing its steepest single-day fall in recent months following disappointing quarterly numbers. Read more

• 14:21 | February 6, 2025

  Rupee plunges 15 paise, hits record low of 87.58 against US dollar

  Rupee plunged 15 paise to its record low level of 87.58 against US dollar on Thursday, as the speculation about a potential RBI rate cut in its upcoming monetary policy meeting weighed over the local currency.

  The local unit has lost over 2 per cent so far this year. The sharp drop in the domestic unit comes after nearly a 3 per cent fall in the USD/INR pair in 2024, making it one of the worst-performing Asian currencies.

  On January 1, 2024, the rupee was at 83.21 against the greenback.The Monetary Policy Committee (MPC) of the Reserve bank of India (RBI) began its three-day meeting on Wednesday. The MPC will announce its policy decisions on February 7.

• 14:00 | February 6, 2025

  RBI MPC expectations Live: Madhavi Arora, Chief Economist & Harshal Patel, Research Associate, Emkay Global Financial Services:

  While a conventional 25bps rate cut in the upcoming MPC policy is less of a market debate, the actions around ‘what beyond a cut’ will be more watched. Easing by stealth via unconventional policy tools like liquidity and regulatory measures will continue. The RBI may also want to address the stress in the non-sovereign money market. We expect another round of ~Rs300bn OMOs, implying Rs900 bn+ in total in FY25E. A CRR cut is a close call, but a temporary cut may not address the underlying banking stress. Easing in ensuing tighter LCR norms (Apr-25 onwards) and lending standards might be a preferred policy tool. We will also watch for additional capital account easing actions via the FCNR route

• 13:22 | February 6, 2025

  RBI may hike ATM cash transaction fees

  Bank customers will have to shell out more for withdrawing cash from automated teller machines (ATMs) as the Reserve Bank of India (RBI) is considering to hike the maximum fee that banks can charge for customers’ incremental cash transactions beyond the free five transactions limit, and ATM interchange fee, sources say. 

  According to sources, the National Payments Corporation of India (NPCI), after consultation with industry players, has recommended hiking the cash transaction maximum feefrom₹21 to ₹22 per transaction after the customer exhausts their free transactions limit.

  Separately, the NPCI has also recommended hiking the ATM interchange fee from ₹17 to ₹19 for cash transactions, and from ₹6 to ₹7 for non-cash transactions. Each time a customer of a bank uses an ATM deployed by another bank, the former bank will have to pay a fee to the latter. This is called an interchange fee.

  

  RBI considering hiking ATM cash transaction, interchange fees

  Reserve Bank of India (RBI) is considering to hike the maximum fee that banks can charge for customers’ incremental cash transactions beyond the free five transactions limit, and ATM interchange fee, sources say.

  CLICK HERE TO READ MORE

• 13:14 | February 6, 2025

  RBI MPC meeting expectations: Market consolidation continues amid caution before RBI’s rate decision

  Indian equity benchmarks opened marginally lower on Thursday despite positive global cues, as investors remained cautious ahead of the Reserve Bank of India’s monetary policy decision, which is expected tomorrow.

  The Sensex opened at 78,513.36 compared to its previous close of 78,271.28 and is currently trading at 78,157.75, down by 113.53 points or 0.15 per cent. Similarly, the Nifty opened at 23,761.95 against its previous close of 23,696.30 and is now at 23,662.70, losing 33.60 points or 0.14 per cent. The market’s tepid response came even as Asian markets gained up to 0.5 per cent following overnight gains in US indices.

  

  Market consolidation continues amid caution before RBI’s rate decision

  Indian equity benchmarks open lower ahead of RBI policy decision; market consolidates with mixed sectoral performance and global cues.

  CLICK HERE TO READ MORE

• 12:41 | February 6, 2025

  RBI MPC meeting expectations: Dhiraj Relli, MD & CEO of HDFC Securities

  At the upcoming Monetary Policy Committee (MPC) meeting, led by Governor Malhotra, the Reserve Bank of India (RBI) is widely expected to cut the repo rate by 25 basis points. However, this decision remains finely balanced. The central bank may instead prioritize liquidity measures and defer the rate cut to the April policy review, particularly in light of mounting global uncertainties.

  There are several compelling arguments in favor of a rate cut. Sluggish economic growth, the government’s advance estimates, and recent efforts to boost banking system liquidity create a strong case. Just last week, the RBI announced plans to inject ₹1.5 lakh crore into the banking system, following a December infusion of ₹1.16 lakh crore through a 50 basis point reduction in the cash reserve ratio.

  Nonetheless, challenges persist. Inflation remains above the RBI’s medium-term target of 4%, and increasing global trade-related uncertainties have added complexity to the economic outlook. The government’s fiscal prudence, reflected in the recently announced Union Budget, points toward a downward trajectory for interest rates. While the broader direction seems clear, the precise timing of the next rate cut remains uncertain.

• 12:29 | February 6, 2025

  RBI MPC Expectations Live Updates: Policy rate: To cut or not to cut

  Given the current growth and investment slowdown, at least a 25 bps cut would be in order, writes Ashima Goyal in businessline

  CLICK HERE TO READ MORE

  

  RBI MPC Meet Policy: To cut or not to cut rate

  Given the current growth and investment slowdown, at least a 25 bps cut would be in order

• 12:23 | February 6, 2025

  RBI MPC Expectations Live Updates: Hitesh Suvarna of JM Financial Institutional Securities Limited

  After keeping a hawk eye on price stability till now, the RBI is now likely to prioritise and address growth concerns over the persistent inflationary pressures in the economy. Markets will be keenly watching Governor Malhotra’s actions and statements for any notable change in the central bank’s approach on the monetary policy decision. The RBI’s recent liquidity measures have improved the deficit situation and ensured that conditions are appropriate for policy easing and a smooth rate transmission. The central bank may highlight the effectiveness of supply side measures in tackling inflationary pressures vs. monetary policy. We continue to expect a 25bps rate cut on 7th Feb, which may be followed by a pause; overall, we expect 50-75bps rate cuts in 2025.

• 12:15 | February 6, 2025

  RBI MPC Expectations Live: Expectations from the upcoming RBI MPC Meeting by Shishir Baijal, Chairman and Managing Director, Knight Frank India

  Right time for turning the policy rate cycle

  “Given the Union budget’s emphasis on reviving consumption to support economic growth, the RBI might consider turning the policy rate cycle. This potential rate cut will align with the budget’s objectives of stimulating economic activity while managing a prudent fiscal position, which provides comfort on currency and inflation fronts. Additionally, the government’s balanced borrowing plan and efforts to enhance liquidity could support a favourable environment for such a rate cut.

  A rate cut will be beneficial for the real estate sector as it will make borrowings more affordable for the home buyers and reinstate consumer sentiment particularly in the lower and mid income segments. It will also potentially enhance liquidity in the banking system making it easier for developers to access financing for their projects.

• 12:04 | February 6, 2025

  RBI MPC Expectations Live updates: Aastha Gudwani, India Chief Economist, Barclays on RBI MPC

  We maintain our forecast for the MPC to cut the repo rate by 25 bp at its 7 February meeting.

  Alongside a policy repo rate cut, a change in stance to accommodative we see the RBI announce additional measures to infuse liquidity such as topping up the PMO purchase calendar.

  We understand the clamor for a successive CRR cut (a 50bp cut will infuse INR1.16 trn) but that’s NOT our base case. 2 reasons behind this-

  The revised estimates of non-committed revenue expenditure and capital expenditure (particularly capital outlay) indicate sharp increases in Jan – Mar (much higher than the monthly run rate seen between April- December). A monthly capex run rate of INR1.08 trn is needed for the government to meet the RE (vs the monthly run rate of INR767bn seen during Apr-Dec), corresponding numbers for non-committed revex stand at INR.274 trn (vs INR 1.93trn). So, either government spending will pick up sizably during Jan – Mar, thus addressing the liquidity deficit concerns autonomously or the revised estimates may disappoint.

  There is no reason for the RBI MPC to question the revised estimates and thus one can expect a revival in government spending in these months, reducing the need to do a CRR cut to address the liquidity deficit problem.

  It is arguably the most potent tool for permanent liquidity infusion and using it for the second consecutive time may be a hurried utilization. Relying on topping up of OMO purchases is a low hanging fruit, we see that as preferred choice.

• 12:01 | February 6, 2025

  RBI MPC Expectations Live updates: More accommodative stance for NBFCs, banks needed in RBI monetary policy: HSBC

  Upcoming monetary policy announcement by the Reserve Bank of India (RBI) is expected to provide clarity on crucial aspects that will shape the financial services sector, according to a report by HSBC.The report stated that a more accommodative stance from the RBI would be particularly beneficial for Non-Banking Financial Companies (NBFCs) and banks, influencing their growth and profitability.It said “RBI will be more accommodative going forward which would be positive for all NBFCs, especially the larger, better-diversified and highly rated NBFCs.

• 11:57 | February 6, 2025

  RBI MPC expectations Live updates: Faltering rupee lags Asian peers, braces for RBI rate cut

  The rupee finds itself on shaky ground ahead of the central bank’s first rate cut in nearly five years, which some traders reckon could spur fresh losses for a currency that is already lagging its regional peers in 2025.

  The rupee has declined about 2% this year, pressured by portfolio outflows, uncertainty around U.S. trade tariffs and expectations of rate cuts by the Reserve Bank of India (RBI).

• 11:39 | February 6, 2025

  RBI MPC expectations Live: New RBI Governor’s Sanjay Malhotra’s first MPC meeting; may cut repo rate

  The newly-appointed Reserve Bank of India (RBI) Governor Sanjay Malhotra is chairing his first Monetary Policy Committee (MPC) meeting starting Wednesday.

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  RBI MPC Meeting 2025: RBI cuts repo rate by 25 bps as expected

  The monetary policy committee (MPC) that met under the new RBI Governor, Mr Sanjay Malhotram revised the repo rate from 6.50% to 6.25%.

• 10:19 | February 6, 2025

  RBI MPC meeting expectations Live: Markets trade lower after initial optimism ahead of RBI policy decision

  Benchmark indices Sensex and Nifty gave up early gains and were trading lower on Thursday amid caution ahead of the RBI’s monetary policy decision and fresh foreign fund outflows.

  The 30-share BSE benchmark Sensex climbed 280.38 points to 78,551.66 in early trade. The NSE Nifty went up 77.25 points to 23,773.55.

  Later, both the benchmark indices gave up early gains and were quoting lower. The BSE benchmark traded 126.78 points lower at 78,141.80, and the Nifty quoted 42.85 points down at 23,653.45.

• 10:07 | February 6, 2025

  RBI MPC meeting expectations : Rate trajectory

  Malhotra’s policy statement and subsequent press conference will be closely watched for signs he’s sticking to his predecessor’s commitment in bringing inflation down to the 4% target. Analysts will also be keenly watching for any clues on how long and deep any easing cycle could be.

• 09:54 | February 6, 2025

  Who is Sanjay Malhotra?

  • IAS officer of 1990 batch of Rajasthan cadre
  • Computer Science engineer from IIT-Kanpur
  • Holds a Master’s in Public Policy from Princeton University, USA
  • Before his stint in the Department of Revenue, he was a Secretary in the Department of Financial Services.

    Hailing from Rajasthan, Sanjay Malhotra, 56, is known for his consensus-building approach and pivotal role in implementing the new income tax regime

  

  Who is RBI Governor-designate Sanjay Malhotra?

  Sanjay Malhotra, who is from Rajasthan, is known for tax reforms, appointed RBI Governor, with expertise in finance and public policy.

• 09:46 | February 6, 2025

  RBI MPC expectations Live: Almost entirely new 6-member monetary policy committee

  The governor is chairing an almost entirely new six-member monetary policy committee. Deputy Governor M. Rajeshwar Rao is temporarily on the MPC to replace Michael Patra — who retired last month — while three external members of the MPC joined in October.

• 09:44 | February 6, 2025

  RBI MPC meeting expectations Live: Economists predict lower benchmark repurchase rate

  Most of the economists surveyed by Bloomberg predict the Reserve Bank of India will now lower the benchmark repurchase rate by at least 25 basis points to 6.25 per cent on Friday. Some analysts say there’s even a chance Malhotra could surprise with a bigger move of 50 basis points.

• 09:40 | February 6, 2025

  Sanjay Malhotra may depart from Shaktikanta’s approach

  Governor Sanjay Malhotra, who took charge in mid-December, is likely to depart from the hawkish approach of his predecessor, Shaktikanta Das, who kept interest rates unchanged for two years as he doggedly chased a 4% inflation target, says Bloomberg

• 09:30 | February 6, 2025

  RBI seen cutting rates for first time since May 2020

  The Reserve Bank of India is widely expected to cut interest rates for the first time in nearly five years in Governor Sanjay Malhotra’s first monetary policy review on Friday, aiming to boost economic growth which is seen falling to a four-year low.

  Over 70% of respondents, 45 of 62, in a Jan. 22-30 Reuters poll forecast the RBI would cut its key repo rate by 25 basis points to 6.25% at the conclusion of its Feb. 5-7 meeting, while others expect it will keep rates unchanged, mostly because of above-target inflation.

  

  RBI expected to cut rates for the first time since May 2020

  RBI expected to cut rates to boost economy amid slowing growth and above-target inflation, analysts predict.

• 09:11 | February 6, 2025

  RBI MPC Meeting Feb 2025: Date, time, expectations and more

  The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) is meeting on Friday, February 7, 2025.

  What will happen at the MPC meeting?

  The MPC meeting will begin on February 5 and will conclude on February 7. The RBI Governor Sanjay Malhotra will announce the committee’s decisions once the meeting ends on February 7.

  

  RBI MPC Meeting Feb 2025: Date, time, expectations and more...

  RBI's MPC meeting on February 7 may result in a rate cut due to recent liquidity measures and economic indicators.

• 09:08 | February 6, 2025

  RBI MPC meeting Expectations Live: RBI may cut Repo Rate by 25 bps on February 7: Bank of Baroda

  The Reserve Bank of India (RBI) is expected to reduce the repo rate by 25 basis points (bps) in its upcoming monetary policy announcement on February 7, according to a report by Bank of Baroda. 

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Published on February 6, 2025