Following are the highlights of the bi-monthly monetary policy announced by Reserve Bank Governor Sanjay Malhotra after the Monetary Policy Committee (MPC) meeting on Friday:
Photograph: Danish Siddiqui/Reuters
- Repo rate reduced by 25bps to 5.25%;
- 4th rate cut, totalling 125 bps, since February 2025;
- MPC also decided to continue with neutral stance;
- GDP growth forecast for FY26 raised to 7.3% from 6.8%;
- Inflation estimates lowered to 2% from 2.6%;
- Policy space exists to support growth momentum;
- High-frequency indicators suggest economic activity holding up in Q3;
- RBI to conduct OMO purchases of G-secs of Rs 1 lakh cr;
- RBI will also conduct 3-year USD/INR buy-sell swap of $5 bn;
- Asset quality, profitability of banks continue to remain robust;
- Guv says committed to provide sufficient durable liquidity to banking system;
- CAD expected to remain modest during 2025-26;
- As on Nov 28, forex reserves stood at $686.2 bn;
- Next MPC scheduled during Feb 4 to 6, 2026.