In this screenshot from @reservebankofindia593 via Youtube, RBI Governor Sanjay Malhotra gestures while delivering the Monetary Policy statement, in Mumbai, on June 6, 2025. Photo: @RBI via PTI Photo)
Reserve Bank of India’s monetary policy committee (MPC) on Friday (June 6, 2025) decided to cut policy repo rate by 50 basis points to 5.5% with immediate effect.
Reserve Bank of India Governor Sanjay Malhotra said “Indian economy presents strength, stability and opportunity amid global concerns.”
Mr. Malhotra said that “Indian economy growing at a very fast pace, we are making all efforts to grow even faster in our vision of Viksit Bharat” and added that “Indian economy offers immense opportunities to investors.”
The RBI Governor said “Inflation outlook for FY26 revised downwards to 3.7%, from 4%.”
Mr. Malhotra further added that “After reducing repo by 100 bps in quick succession, monetary policy left with limited space to support growth.”
He said “Government’s continued thrust on capex should help revive investment activity.”
The RBI Governor said from now MPC will carefully assess income data, evolving outlook to chart out future policy. He also added that “RBI retains GDP growth forecast for current fiscal at 6.5 pc, geopolitical tensions and weather vagaries pose headwinds.”
Mr. Malhotra said “Current account deficit (CAD) for FY’25 to remain low; FY26 within sustainable level.”
He said “Core inflation remains largely stable, benign prices expected for major items going forward.”
(With PTI inputs)
Published – June 06, 2025 10:28 am IST