Mumbai, April 7 (HS): The Reserve Bank of India (RBI) has initiated its inaugural review meeting of the Monetary Policy Committee (MPC) for the financial year 2025-26, taking place from April 7 to 9, under the leadership of RBI Governor Sanjay Malhotra. The results of this three-day meeting will be disclosed on April 9 at 10 AM. Economists anticipate a potential reduction in the repo rate by 0.25%. The MPC, comprising six members—three from the RBI and three appointed by the central government—focuses on formulating monetary policy to maintain price stability and setting key policy interest rates. Typically, these meetings are held bi-monthly.

The repo rate, which is the rate at which banks borrow money from the RBI, directly affects lending rates for borrowers. A decrease in the repo rate leads to lower interest rates on loans, including home, car, and personal loans, facilitating easier access to credit for businesses and consumers alike. Currently, the MPC’s members include RBI Governor Sanjay Malhotra, Executive Director Dr. Rajiv Ranjan, Deputy Governor M Rajeshwar Rao, Dr. Nagesh Kumar from the Industrial Development and Economic Research Institute, Saugata Bhattacharya, and Dr. Ram Singh from the Delhi School of Economics. The previous MPC meeting resulted in a repo rate cut from 6.50% to 6.25%, marking the first reduction in almost five years, with six such meetings scheduled for the current financial year.

Hindusthan Samachar / Jun Sarkar