The Reserve Bank of India (RBI) will announce its bi-monthly monetary policy decision today. The central bank’s six-member Monetary Policy Committee (MPC), led by Governor Sanjay Malhotra, began its meeting on Wednesday to discuss the Indian economy, inflation and other economic factors.
This will be the last policy review for the financial year 2025-2026. The RBI has already reduced the repo rate by 125 basis points since last February. An SBI research report stated that the Central Bank is likely to maintain the status quo in its upcoming policy.
The report noted that since the last MPC meeting in December, one of the major developments has been the EU-India and US-India trade agreements, resulting in a reduction in tariffs on Indian products to 18 per cent.
As a result, India now has one of the lowest tariff rates among Asian countries, which is expected to boost the country’s export competitiveness. Bank of America’s Global Research note also said the RBI’s rate-cutting cycle appears to be over for now.
