RBI Monetary Policy 2025 Highlights, Reduce the Repo Rate by 25 Basis Points

The Reserve Bank of India (RBI) has reduced the repo rate by 25 basis points. This means the rate has come down from 6.25 percent to 6.00 percent. This decision was made during the latest Monetary Policy meeting in April 2025. It is the second time this year that the RBI has lowered the rate. The purpose of this move is to give a boost to the economy.

The RBI also changed its policy stance from neutral to accommodative. This means it is ready to take more steps in the future if needed to support growth. All members of the Monetary Policy Committee agreed on this decision.

At the same time, the RBI has also reduced its growth forecast for the Indian economy. It now expects the GDP to grow at 6.5 percent in the financial year 2025-26, instead of the earlier 6.7 percent. Inflation is also expected to be around 4 percent, which is slightly lower than earlier estimates.

What This Means for Common People and Businesses

A lower repo rate means that banks can borrow money from the RBI at a cheaper rate. This makes it possible for banks to offer loans to customers at lower interest rates. It will help people save more money every month.

Businesses will also benefit from this rate cut. They can now take loans at lower interest rates to grow their operations or start new projects. This is especially helpful for small businesses and people in real estate. Cheaper loans can help developers start new housing projects and boost construction work.

This step is aimed at increasing spending and investment in the country. When people and businesses spend more, it helps the economy grow. The RBI is trying to make sure the economy stays strong even when global conditions are uncertain.