Overview

• The Reserve Bank of India reduced the repo rate to 6% on April 9, 2025, following a similar 25 bps cut in February, marking a shift to monetary easing.
• Governor Sanjay Malhotra highlighted the importance of supporting private consumption and reviving corporate investment through lower borrowing costs.
• Minutes from the latest Monetary Policy Committee meeting stress the need for an accommodative stance to sustain growth momentum amid global economic uncertainties.
• RBI’s recent liquidity measures have propelled banking stocks, with the Bank Nifty index reaching a record high of 55,961 on April 22, 2025.
• The next Monetary Policy Committee meeting is scheduled for June 4-6, 2025, to assess evolving growth and inflation trajectories.