Quick Summary
In a major policy move, the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI), chaired by Governor Sanjay Malhotra, voted to cut the policy repo rate by 50 basis points (bps) to 5.50% during its 55th meeting held from June 4 to 6, 2025. The decision, effective immediately, is aimed at supporting domestic growth momentum amid a sharp decline in inflationary pressures. Consequently, the Standing Deposit Facility (SDF) rate stands reduced to 5.25%, and both the Marginal Standing F
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FAQ :
The Monetary Policy Committee voted to reduce the policy repo rate by 50 basis points to 5.50%.
The decision was made during the 55th meeting of the Monetary Policy Committee, held from June 4 to 6, 2025.
The Standing Deposit Facility (SDF) rate has been adjusted to 5.25%.
The Marginal Standing Facility (MSF) rate and the Bank Rate have been adjusted to 5.75%.
The cut is aimed at supporting domestic growth momentum, as inflationary pressures have declined significantly and the RBI aims to achieve its medium-term inflation target while supporting growth.
The RBI projects real GDP growth for 2025-26 at 6.5%.
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