RBI Monetary Policy: From Repo Rate To GDP Target And CRR, Five Key MPC Highlights Today

The Monetary Policy Committee has decided to maintain the repo rate at 6.5% for the eleventh consecutive time, with a 4:2 majority, announced Reserve Bank of India Governor Shaktikanta Das.

Repo Rate, SDF, MSF Unchanged

The RBI has kept the repo rate, Standing Deposit Facility and Marginal Standing Facility unchanged.

Neutral Stance Maintained

The Monetary Policy Committee has decided to maintain a neutral" stance on monetary policy.

CRR Cut By 50 Basis Points

The Cash Reserve Ratio was cut by the Reserve Bank of India by 50 basis points to 4% to all banks in order to revive the economic growth by improving liquidity.

The CRR will be cut in two tranches in fortnights beginning Dec. 14 and Dec. 28 by 25 basis points each, Governor Shaktikanta Das said. CRR cut to result in liquidity increase of Rs 1.16 lakh crore.

Real GDP Growth Forecast Lowered

Reserve Bank of India has cut the real GDP growth for the ongoing fiscal year to 6.6% from 7.2% earlier, according to Reserve Bank of India's Governor Shaktikanta Das.

The central bank sees GDP growth in the third and fourth quarters at 6.8% and 7.2%, respectively. The growth is projected to be 6.9% in the first quarter of fiscal 2026 and 7.3% in the second quarter of the next fiscal.

CPI Inflation Forecast Revised

The Consumer Price Index inflation for FY25 is now expected to be 4.8%, up from the earlier projection of 4.5%.

The CPI is seen at 5.7% and 4.5% in the final two quarter in the ongoing financial year while it is seen at 4.6% and 4% in the first and second quarter of the next financial year.