RBI MPC Meeting 2025: Key Deliberations Begin Ahead of Repo Rate Decision

resr 5paisa Research Team

Last Updated: 4th February 2025 - 04:03 pm

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The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) is set to begin its first meeting of 2025 today, February 4. This will be a crucial session as it marks the first MPC under the leadership of newly appointed RBI Governor Sanjay Malhotra. The four-day meeting will conclude on February 7, when the much-awaited decision on the repo rate will be announced.

With inflation trends and liquidity conditions in focus, market participants, banks, and policymakers are keenly awaiting any changes in monetary policy. The decision will play a key role in shaping the financial and economic outlook for the upcoming months.

RBI MPC Meeting Dates 2025: Schedule and Timings

The RBI MPC Meeting 2025 will be held from February 4 to February 7. The official announcement regarding the repo rate is scheduled for 10:00 AM on February 7, 2025. Following the announcement, Governor Sanjay Malhotra will hold a press conference at 12:00 PM, where he will explain the rationale behind the committee’s decision and share insights on India’s economic outlook, including his take on the Union Budget 2025.

This will be a closely watched event as it will provide cues on RBI’s monetary policy stance for the coming months.

What to Expect from the RBI MPC Meeting 2025?

This RBI MPC Meeting 2025 is particularly significant as it is the first one under Governor Sanjay Malhotra’s leadership. He took office in December 2024 following the tenure of Shaktikanta Das. During this crucial meeting, market participants will be closely watching the repo rate announcement on February 7.

One of the key aspects under discussion will be whether the central bank decides to cut the repo rate. A Reuters poll indicates that there is a possibility of a 25 basis points reduction. This would bring the benchmark lending rate down from 6.5% to 6.25%. Such a move would align with the RBI’s recent efforts to improve liquidity in the financial system.

Liquidity Measures and Market Sentiment

Over the past few months, the RBI has taken significant steps to boost liquidity. In December 2024, the Cash Reserve Ratio (CRR) was reduced by 50 basis points, injecting nearly ₹1.16 lakh crore into the banking system. Additionally, last month, the central bank infused another ₹1.5 lakh crore to further strengthen liquidity.

Given these liquidity measures, a repo rate cut during the RBI MPC Meeting 2025 could further support economic growth and improve borrowing conditions for businesses and consumers. 

RBI MPC Meeting 2025: A Look at the Last Policy Decision

During the last RBI MPC meeting in December 2024, then-Governor Shaktikanta Das had kept the repo rate unchanged at 6.5%. However, the CRR was reduced by 50 basis points, which helped inject ₹1 trillion into the economy.

The December policy was largely focused on maintaining inflation within target levels while ensuring sufficient liquidity to support economic growth. With Governor Sanjay Malhotra now at the helm, some shifts in the monetary policy approach can be expected.

All Eyes on RBI MPC Meeting 2025

As the RBI MPC Meeting 2025 kicks off today, all eyes are on the potential rate cut decision scheduled for February 7. Governor Malhotra’s first major policy decision will set the tone for the RBI’s monetary strategy in 2025. Investors, businesses, and policymakers will closely analyze the outcomes of this meeting to gauge the future direction of interest rates and liquidity conditions in India.

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