The Governor of the India reserve bank (RBI), Sanjay Malhotra, announced on Friday that the central bank had reduced the rate of removal of the policy by 25 basis from 6.5% to 6.25%. The decision was taken in unanimous.
The MPC committee has decided to maintain a neutral position. The SDF rate will be 6% and the bank’s rate will be set at 6.5%, he added.
The governor said in his speech that the flexible inflation targeting framework has served India well, while adding the interest of the economy requires financial stability.
During its meeting in December 2024, the RBI maintained the repo rate unchanged at 6.5% for the 11th consecutive period due to challenges resulting from inflation. It was the first meeting of the RBI monetary policy committee with Sanjay Malhotra as governor of the Central Bank. The RBI MPC met from February 5 to 7, 2025.
