Highlights of RBI's April 2025 monetary policy

Mumbai, Apr 9 (PTI) Following are the highlights of the first bi-monthly credit policy of 2025-26 fiscal announced by Reserve Bank Governor Sanjay Malhotra after the 54th meeting of Monetary Policy Committee (MPC) on Wednesday: * Key interest rate (repo) reduced by 25 basis points to 6 pc, lowering it for the second time in a row * Six-member MPC unanimously votes to reduce repo rate * Monetary stance changed to accommodative, meaning MPC to consider only two options -- status quo or a rate cut * GDP growth forecast for FY26 lowered to 6.5 pc from 6.7 * Indian economy has made steady progress towards goals of price stability, sustained growth * RBI says trade tariff related measures have exacerbated uncertainties clouding the economic outlook across regions * Inflation projected at 4 pc in FY26, lower from earlier estimate of 4.2 * RBI permits NPCI to raise UPI transaction limit for person-to-merchant payments * RBI proposes to review guidelines for lending against gold jewellery * Central bank proposes to expand scope for co-lending and issue generic regulatory framework * Minutes of 54th MPC meeting to be published on April 23 * Next meeting of MPC is scheduled from June 4 to 6, 2025. PTI NKD CS HVA

Source: PTI