RBI Cuts Repo Rate by 25 Basis Points to 6%, MPC Vote Unanimous Amid Global Growth Risks

The Reserve Bank of India (RBI) has announced a 25 basis points (bps) cut in the key repo rate, bringing it down to 6%, during the latest Monetary Policy Committee (MPC) meeting. The decision, taken unanimously by the MPC, reflects the central bank’s commitment to supporting growth while remaining vigilant to global economic uncertainties.

 

Repo Rate Cut:

The RBI reduced the repo rate from 6.25% to 6%, marking the second rate cut this year, as part of its accommodative policy stance.

The move aims to provide a boost to economic growth amid external challenges such as rising U.S. tariffs and global trade tensions.

 

MPC Decision:

The MPC vote on the rate cut was unanimous, signaling consensus among policymakers on the need for monetary easing.

RBI Governor stated that inflation remains within comfortable levels, providing room for policy action.

 

Economic Context:

India’s economy is showing signs of improvement, with growth picking up in key sectors like manufacturing and services.

However, global risks, including U.S. tariffs and geopolitical uncertainties, continue to pose challenges. The RBI remains cautious about potential spillover effects on India’s economy.

 

Inflation Outlook:

Inflation is currently within the RBI’s target range of 4% (+/-2%), giving policymakers confidence to focus on growth.

The central bank emphasized its commitment to closely monitoring inflationary trends and global developments.

 

Leadership Insights:

RBI Governor stated:

“The unanimous decision reflects our confidence in India’s economic resilience. While inflation is under control, we remain vigilant to global risks and will take necessary measures to ensure stability.”

 

Conclusion:

The RBI’s proactive stance underscores its focus on balancing growth and stability while navigating a complex global economic environment.

Source: Placeholder analysis based on provided announcements.