MPC highlights: Growth estimate revisions mainly due to tariff-related uncertainties, says Malhotra

RBI MPC Meeting 2025 highlights: Catch all the latest news updates on the RBI Monetary Policy Committee meeting here

5:05 PM

Rate cut will increase accessibility: Shailesh Chandra, President, SIAM

“Reduction in rates at this time, would have a positive impact on the Auto Sector, as it will increase accessibility by reducing the financing costs, thereby creating a positive sentiment across the market,” Shailesh Chandra, president, SIAM and managing director of Tata Passenger Vehicles Ltd & Tata Passenger Electric Mobility Ltd, said. 

4:08 PM

Buyers will benefit from the improved credit environment: The Guardians Real Estate Advisory

"The RBI’s decision to cut the repo rate by 25 basis points to 6% comes as a welcome move for the real estate sector. A lower interest rate environment generally improves home loan affordability, which is likely to boost buyer sentiment especially in a price-sensitive market like Mumbai. We had already seen a positive response during the last cut from 6.50% to 6.25%, and with the current reduction to 6%, we expect this trend to continue. Developers and buyers alike will benefit from the improved credit environment, and we anticipate stronger traction in mid-income and first-time homebuyer segments over the next two quarters,"  Kaushal Agarwal, chairman at The Guardians Real Estate Advisory, stated. 

2:28 PM

Homebuyers, developers could find more breathing room: Bharat Dhawan, managing partner, Forvis Mazars

"With borrowing costs now slightly lower, homebuyers and developers could find more breathing room, giving a welcome push to the real estate sector. On the rural side, strong farm activity is likely to boost income levels, which may support spending in smaller towns and help keep consumption steady. RBI's stance has shifted from neutral to accommodative now, which means RBI may go for another 25-bps cut in the second half of 2025, especially," says Bharat Dhawan, managing partner, Forvis Mazars.

2:11 PM

Concerned about tariff impact on growth more than inflation: RBI Governor

Reserve Bank of India (RBI) Governor Sanjay Malhotra on Wednesday said that more than inflation, the central bank is concerned about the impact of US tariffs on growth. During the post-Monetary Policy press conference, Malhotra said the RBI lowered the growth forecast primarily because of the tariff-related uncertainties. "More than inflation, we are concerned about tariff impact on growth," he said. Read here for a detailed story.

1:51 PM

Lower interest rates likely to spur demand for home loans: PNB Housing Finance

“The RBI’s decision to reduce the repo rate by 25 basis points and shift its stance to ‘accommodative’ is a welcome move, especially in the current environment of moderating inflation and global headwinds. For the housing finance sector, this signals a favourable lending environment and bodes well for homebuyers, particularly in the affordable and mid-income segments. Lower interest rates will help improve housing affordability and are likely to spur demand for home loans, thereby giving a boost to residential real estate. Additionally, the RBI’s focus on ensuring adequate liquidity and enhancing credit availability provides confidence to both lenders and borrowers," Girish Kousgi, MD and CEO, PNB Housing Finance, stated.

1:39 PM

Rate cut will have positive cascading effect across all capital-intensive sectors: Hindustan Power

"We welcome the Reserve Bank of India’s decision to reduce the repo rate by 25 basis points. This move comes at a crucial time and is expected to have a positive cascading effect across all capital-intensive sectors in the country. For the power industry, access to lower-cost financing is essential to accelerate infrastructure development, invest in clean energy projects, and modernize grid systems. The reduction in borrowing costs will ease the financial burden on existing projects and enhance the viability of new investments, especially in the renewable energy space where long-term funding plays a critical role," Ratul Puri, chairman, Hindustan Power, stated.

1:35 PM

RBI will continue its focus on lowering repo rate: Director of Research, Great Lakes Institute, Chennai

"The RBI’s decision to lower the repo rate was expected even before the chaos of the ongoing trade wars.  US tariffs, if not reversed or lowered in the next few months, will disrupt global trade since the US is a leading importer of manufacturing goods, both intermediate and final, from several countries. If slowing exports lead to an excess supply in the domestic market, consumer inflation in India will slow down. Services exports will also be adversely impacted by slowing global growth. Further, as global growth slows, crude oil prices may fall, lowering pressure on fuel inflation. However, potential rupee depreciation could lead to increased prices of imported items," Vidya Mahambare, professor of economics and Director of Research, Great Lakes Institute of Management, Chennai, said.

1:02 PM

RBI Governor Malhotra on IndusInd crisis

"These are not failures, just episodes. We are safe, secure at a systemic level," says Governor Malhotra.

12:55 PM

RBI's statement on tackling digital fraud

Digital fraud is a major concern for all of us and RBI is working proactively to combat this, says RBI Deputy Governor Swaminathan.

12:49 PM

RBI MPC meeting LIVE update: No worry on personal loan growth front in banks, says RBI governor

12:43 PM

RBI MPC news updates: We have sufficient reserves, says RBI Governor Sanjay Malhotra

RBI Governor Malhotra underlined that Indian Rupee is quite stable and that there are 'sufficient' reserves.

12:40 PM

RBI MPC update: Lifting the economy will be a joint effort of government and RBI, says Governor Malhotra

12:35 PM

Governor Malhotra clarifies on guidelines on loan against gold

RBI Governor Malhotra stated that  the proposed guidelines on loan against gold not aimed at tightening norms but aimed at rationalising conduct of lenders. 

12:32 PM

RBI MPC update: Impact of US tariff hike is much less on India; we have comparative advantage, says Governor

 

 

12:24 PM

I am not Sanjay of Mahabharat, don't have divine vision: RBI Governor

"We have reduced repo rates, changed the stance which suggests that rates will go downwards. Where it will reach, that is to be seen. I am Sanjay, not Sanjay of Mahabharat to be able to foresee that far. I don't have that divine vision," says RBI Governor Sanjay Malhotra.

12:21 PM

Trend on rates is going to be downwards, says RBI Governor Sanjay Malhotra

RBI committed to maintaining sufficient liquidity to ensure speedy transmission of rate cut, says Governor Malhotra

 

 

12:15 PM

MPC update: RBI to maintain sufficient liquidity to ensure speedy transmission of rate cut, says RBI Governor

12:13 PM

RBI MPC Meeting LIVE: Growth estimate revisions mainly due to global uncertainties, says Malhotra

12:11 PM

RBI MPC Meeting LIVE: "Worried about impact on growth than inflation," says RBI Governor

12:08 PM

RBI MPC Meeting LIVE: RBI Governor Sanjay Malhotra addresses media

11:39 AM

Watch: MPC reduces repo rate by 25 basis points to 6%

11:12 AM

RBI MPC meeting update: A look at key policy rates

RBI Governor Sanjay Malhotra announced that the Standing Deposit Facility (SDF) rate has been changed to 6 per cent and the marginal standing facility (MSF) rate and the bank rate to 6.5 per cent. Read here for a detailed story.

11:01 AM

RBI cuts repo rate by 25 bps to 6%

The RBI has unanimously reduced the repo rate by 25 basis points to 6 per cent.  For a detailed story, read here.

10:55 AM

RBI MPC meet 2025 LIVE update: We are aiming for non-inflationary growth, says RBI Governor

RBI to remain agile and will put in place policies that are clear, consistent, credible and in best interest of economy, says RBI Governor Malhotra.

10:34 AM

RBI MPC meet LIVE: RBI committed to provide sufficient system liquidity, says RBI Governor

System liquidity was in deficit in January. It tapered during February, March and turned in surplus as a result of slew of measures, says Sanjay Malhotra.

10:31 AM

Inflation for FY26 has been projected at 4% as against 4.2%: RBI Governor

RBI lowers FY26 inflation projection to 4 per cent from 4.2 per cent projected earlier. 

Inflation projections by RBI
 

-Q1 at 3.6%

-Q2 at 3.9%

-Q3 at 3.8%

-Q4 at 4.4%

10:25 AM

RBI MPC Meeting Live: Real GDP is now projected for FY26 at 6.5%, says Sanjay Malhotra

RBI forecasts real GDP growth in:

-Q1 at 6.5%;

-Q2 at 6.7%;

-Q3 at 6.6%;

-Q4 at 6.3%

10:22 AM

RBI MPC Meeting LIVE: Merchandise exports will be weighed down by global uncertainties, says Malhotra

Manufacturing activity is showing signs of revival, says Malhotra.

10:18 AM

Higher tariffs will have a negative impact on net exports: Governor Malhotra

"Dent on global growth due to trade friction will impede domestic growth also; higher tariffs shall have a negative impact on net exports," RBI Governor Malhotra said.

10:16 AM

Our stance provides policy rate guidance without any guidance on liquidity management, says RBI governor

"MPC is considering only two options: status quo or rate cuts,"  Malhotra said.