RBI MPC Meeting February 2025: What to Expect
The Reserve Bank of India (RBI)’s Monetary Policy Committee (MPC) is meeting from February 5th to 7th, 2025. This is the first meeting under new Governor Sanjay Malhotra, and it follows the Union Budget presented on February 1st, 2025.
Key Focus of the Meeting
The MPC will announce its decisions on February 7th, 2025. This meeting is crucial as it’s the first after the recent budget, which provided tax relief to the middle class. The market is eager to see how the RBI addresses key economic challenges.
Where to Watch the Announcement
Governor Malhotra will announce the MPC’s decisions at 10:00 AM on February 7th. You can watch his speech live on the RBI’s social media channels (Facebook, X (formerly Twitter), and YouTube). Financial news channels will also broadcast the speech and provide further analysis.
Economic Outlook and Expectations
Several factors are influencing the RBI’s decision-making. High inflation remains a concern, while the Indian economy is experiencing a slowdown. The falling value of the Rupee and weak domestic demand add to the complexity.
Expert Predictions
A Bloomberg survey of 28 economists reveals that most expect a rate cut. Out of the 28, 24 believe the MPC will lower the repo rate. While most predict a 25 basis point reduction, one economist anticipates a larger cut of 50 basis points. The current repo rate is 6.5%. The market will closely watch the actual outcome and its impact on the Indian economy.
What is the Repo Rate?
[[Repo rate]] is the interest rate at which the central bank lends money to commercial banks. A lower repo rate encourages borrowing and spending, boosting economic activity, whereas a higher rate aims to curb inflation by making borrowing more expensive. This meeting’s outcome will significantly influence India’s financial landscape and the direction of the economy in the near future. The decisions taken by the MPC are eagerly awaited by businesses, investors, and the public alike.