RBI MPC Meet: The Reserve Bank of India (RBI) will kick off its first monetary policy review meeting of financial year 2025-26 on Monday, April 7. The three-day deliberation by the Monetary Policy Committee (MPC) will conclude on Wednesday, April 9, with the policy decision to be announced at 10 am.
The MPC, which meets six times a year, is expected to continue its focus on supporting economic growth amid easing inflation concerns. In its previous meeting held in February, the committee had unanimously cut the repo rate by 25 basis points—from 6.5% to 6.25%—marking the first reduction in nearly five years.
According to Care Edge Ratings, another 25-basis-point cut is anticipated in this week’s policy announcement. Similarly, Bank of Baroda has projected a cumulative rate cut of 75 basis points over the course of 2025. The repo rate, which currently stands at 6.25%, is the rate at which the RBI lends money to commercial banks and is a crucial tool for managing liquidity and inflation.
India has largely managed to keep inflation within the RBI’s target band of 2–6%, with a medium-term goal of 4%. With inflation relatively under control, the central bank is expected to pivot further toward boosting growth.
Meanwhile, global economic dynamics are also in flux. US President Donald Trump on April 2 announced steep tariffs ranging from 11% to 49% on imports from 60 countries, including India and China. These tariffs will come into effect on April 9—the same day the RBI policy decision is announced.
Analysts believe this geopolitical move could play to India’s advantage, as rival exporters such as China, Vietnam, Bangladesh, Cambodia, and Thailand face higher barriers to the US market. This may open up new opportunities for Indian exporters to enhance their global competitiveness.
As the RBI gears up to fine-tune its monetary stance, all eyes will be on how it balances domestic growth priorities with emerging global trade headwinds.