RBI's New Governor Malhotra Set to Announce Historic Rate Cut After 5-Year Pause

The Reserve Bank of India's Monetary Policy Committee, under newly appointed Governor Sanjay Malhotra, is expected to cut the repo rate by 25 basis points to 6.25% in today's announcement, marking the first reduction since May 2020. The anticipated rate cut comes amid easing inflation pressures and improved supply conditions. Market experts believe this strategic move aims to boost economic growth, with the RBI projecting 7.2% GDP growth for FY 2024-25. The decision follows eleven consecutive meetings of rate pause and comes after December's significant CRR reduction to 4%.

Sources: Times of India, Bank of Baroda Research, State Bank of India Economic Report