1 week Ago By NDTV Profit News
The Reserve Bank of India (RBI)'s 54th meeting of the Monetary Policy Committee (MPC) ended on Wednesday. The three-day meeting of the rate-setting panel, which began on Monday, will deliberate on the repo rate (short-term lending rate for commercial banks).The central bank is expected to cut key interest rates by up to 25 basis points, driven by the RBI’s focus on stimulating growth and addressing the economic challenges posed by US tariffs.
During the February meeting, the RBI MPC, headed by Governor Sanjay Malhotra, slashed the repo rate by 25 basis points to 6.25%. The RBI has kept the repo rate at 6.
5% since February 2023.The lending rates by the RBI to commercial banks impacts the rates for certain loans provided to customers. This plays a key role in regulating cash flow in the market as higher rates can increase borrowing costs.
The MPC panel, formed in 2016, is mainly tasked with keeping an eye on India's inflation targets. The central government has set an inflation target (gauged by the consumer price index) at 4% (with an upper tolerance limit of 6% and a lower tolerance limit of 2%). In February, the CPI inflation moderated to a seven-month low of 3.
6%, aided by a sharp decline in vegetable prices.RBI Policy Preview: Next Rate Cut Could Be On The AnvilRBI Governor Speech: Date and Time The RBI's Monetary Policy Committee (MPC) meeting, which started on Monday, April 7 concluded on Wednesday, April 9. RBI Governor Sanjay Malhotra's speech will start at 10 a.
m., followed by a press conference.Where To Watch RBI MPC April 2025 Meeting?The monetary policy statement will be streamed live on RBI's YouTube channel and all social media handles from 10 a.
m. onwards. The RBI Governor will also hold a press conference at 12 p.
m. NDTV Profit will also broadcast the RBI Governor's speech live on TV. Further, you can watch the speech on the YouTube Channel of NDTV Profit, or follow real-time updates on the website's live blog.
What To Expect From RBI MPC April 2025 Meeting?According to experts, while retail inflation is expected to remain under check, the RBI’s decision on lending rates will account for factors such as the impact of US tariffs on the economy.On April 2, US President Donald Trump announced sweeping import tariffs on over 180 countries, including India. With the move, India faces 26% tariffs on its imports in the US.
While some experts believe that tariffs may not directly impact the Indian economy significantly, the broader impact on the global economy could affect trade dynamics.According to Bank of Baroda Chief Economist Madan Sabnavis, a new round of tariffs imposed by the US would have some impact on growth prospects and currency. "While it does look like conditions are rather clear for another 25 bps cut in repo rate this time with the inflation prospects being benign and liquidity having settled down, it is also expected that the stance will change to accommodative, meaning.
..that there could be more rate cuts in the offing during the course of the year," Sabnavis told news agency PTI.
Ratings agency ICRA also expects the RBI's Monetary Policy Committee (MPC) to cut rates by 25 basis points in the upcoming meeting. Meanwhile, industry body Assocham suggests a wait-and-watch approach rather than a rate cut. Assocham President Sanjay Nayar projected that the Indian economy will remain strong despite the external challenges.
He anticipated a GDP growth of 6.7% for FY26 and controlled retail inflation.Pradeep Aggarwal, founder and Chairman, Signature Global (India) Ltd.
, also expects the RBI to bring down lending rate to 6% to stimulate consumption and drive economic growth.RBI May Extend Record Cash Boost As Risks Mount, Analysts Say. Read more on Economy & Finance by NDTV Profit.
.
