Highlights Of RBI's Monetary Policy February 2025

Mumbai: Following are the highlights of the bi-monthly monetary policy announced by Governor Sanjay Malhotra on Friday.

* Repo rate (short-term lending rate) reduced by 25 bps to 6.25 pc; 
* First rate cut after a gap of 5 years; last reduction was in May 2020; 
* To continue 'neutral' monetary policy stance; 
* GDP growth for FY'26 projected at 6.7 pc; 
* Inflation to come down to 4.2 pc in FY'26 from 4.8 pc in FY'25; * Food inflation pressures likely to see significant softening; 
* Core inflation expected to rise but remain moderate; 
* Banks to have 'bank.In' internet domain name, non-banks 'fin.In'; * RBI says global economic backdrop remains challenging; 
* Indian economy continue to remain strong, resilient; 
* CAD expected to remain well within sustainable level; 
* As on Jan 31, India's forex reserves stood at USD 630.6 billion, providing import cover of over 10 months; 
* Next meeting of Monetary Policy Committee scheduled for April 7-9.

RBI Governor Sanjay Malhotra said the MPC has also unanimously decided to continue with a neutral stance and will focus on inflation while supporting growth. This would provide flexibility to respond to the macroeconomic environment, he added.