The former revenue secretary in the Ministry of Finance, Malhotra is expected to announce the cuts to lower interest rates for economy’s growth which is expected to reach a four year low.

RBI Governor Sanjay Malhotra announces a 25 basis point cut in the repo rate, lowering it to 6.25%, marking the first reduction in five years. The committee unanimously decided to maintain a neutral stance.

The central bank has reduced key interest rates by 25 bps, a much-needed relief for liquidity boost, but has kept its stance 'neutral'

The rate cut, the first in almost five years, comes a week after Finance Minister Nirmala Sitharaman presented the budget for FY26.

Reserve Bank of India (RBI) governor Sanjay Malhotra has announced the Monetary Policy Committee has cut the benchmark repo rate by 26 basis points.

The repo rate, till now, stood at 6.5 per cent. The move comes barely a week after the Centre cut personal income tax to boost consumption.

The Indian economy, though continuing to remain strong and resilient, also did not remain immune to these global headwinds, with the Indian Rupee coming under depreciation pressure in the recent months.

The first RBI Monetary Policy Committee meeting of 2025 began on February 5, with everyone eagerly awaiting Governor Sanjay Malhotras decision, which will be announced on. This will be his first review as the newly appointed Governor,

The MPC under the new RBI governor will have to walk a tightrope between taming inflation and boosting economic growth. India’s GDP growth in Q2 FY25 slipped to a seven-quarter low of 5.4%. The monetary policy committee forecasts India’s gross domestic product (GDP) to grow at 6.7% in the financial year 2025-26.

This marked the first rate reduction from the central bank in almost five years and this decision will translate into reduced borrowing costs and potentially help homemakers, experts explained.