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The Reserve Bank of India (RBI) kicked off its first bi-monthly Monetary Policy Committee (MPC) meeting for the financial year 2025–26 on Monday, April 7. The much-anticipated policy announcement is set for Wednesday, April 9, 2025, at 10:00 AM.
Governor Sanjay Malhotra, who leads the six-member MPC, will deliver the final verdict on key interest rates. This meeting comes at a critical time, as economic watchers closely monitor global cues like a potential US recession, rising tariffs, and an overall global economic slowdown. The RBI’s decision is expected to offer clarity on how India’s economy might be impacted in the months ahead.
The announcement will be streamed live via the Reserve Bank of India’s official YouTube channel on Wednesday morning. This digital broadcast ensures easy access for investors, economists, and the general public interested in the central bank’s stance on interest rates and economic outlook.
According to Madan Sabnavis, Chief Economist at Bank of Baroda, market expectations are leaning toward a 25-basis-point rate cut in this policy round. Speaking to Mint, Sabnavis said, “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.”
If the RBI adopts an accommodative stance, it would signal that more rate cuts could follow during the fiscal year—an encouraging sign for borrowers and businesses.
What is the Monetary Policy Committee (MPC)?
The MPC is a team of six members, including the RBI Governor, who collectively decide the repo rate, which is the rate at which the RBI lends money to commercial banks. Their primary goal is to maintain price stability and support economic growth by keeping inflation in check, as guided by the government’s target.
This decision holds significant importance for financial markets, businesses, and everyday consumers. A rate cut would make loans cheaper, potentially boosting demand and supporting economic momentum.
As India balances domestic stability against global uncertainty, the RBI’s next move on April 9 could set the tone for FY26’s financial outlook.
