The central bank’s first Monetary Policy Committee (MPC) report since the new Governor assumed office was presented on 7th February, 2025. Sanjay Malhotra, the new governor said, the “Monetary Policy Committee met on 5th, 6th, and today, 7th.” during his presentation of the MPC.
Global economic backdrop is challenging, it uncertain. Indian economy is strong and resilient, but not immune to global winds.
“We will strike the right balance keeping in view benefits and costs of regulations.”, Malhotra said.
After a detailed assessment, MPC decided unanimously to reduce policy rate by 25 bps from 6.5 per cent to 6.25 per cent.
SDF rate 0.6 per cent, and bank rate is 6.5 per cent.
“Economic interest requires increasing efficiency in the economy”, he added.
It was made in 2016, and reviewed again 2021. It has served the Indian economy very well, including the pandemic.
The governor said, the average inflation is lower since the framework, including the CPI numbers.
“We will continue to refine the framework, by using new data”, the Governor said.
Real GDP is at 6.4 per cent, against a robust 8.2 per cent growth earlier.
Economic activities are expected to gear pace, the governor said.
