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This Article is From Feb 07, 2025

Monetary Policy Review: RBI Cuts Repo Rate By 25 bps, Maintains Stance At ‘Neutral’ — CareEdge Analysis

Monetary Policy Review: RBI Cuts Repo Rate By 25 bps, Maintains Stance At ‘Neutral’ — CareEdge Analysis
In its February 2025 meeting, the Monetary Policy Committee of the Reserve Bank of India reduced the policy repo rate by 25 bps to 6.25% and retained neutral stance unanimously.(Photographer: T. Narayan/Bloomberg)

The RBI will continue to remain watchful of the global uncertainties and their impact on the domestic economy. The global trade war will adversely affect India's growth, inflation, and trade dynamics.

NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

CareEdge Report

In its February 2025 meeting, the Monetary Policy Committee of the Reserve Bank of India reduced the policy repo rate by 25 bps to 6.25% and retained neutral stance unanimously. This decision to lower the policy rate comes amidst moderating growth momentum, increasing challenges from external factors, and a slowdown in inflationary pressures.

The decision to retain the neutral stance will enable the RBI to adjust its policy according to the evolving macroeconomic conditions amid heightened uncertainty, especially from the external sector.

In line with our expectations, the GDP growth for the upcoming year (FY26) is projected at 6.7%. However, the RBI anticipates a lower inflation rate of 4.2% for FY26, below our projections of 4.5%.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

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