Reserve Bank reduced 0.5 repo rate, know from 10 things, what is special in RBI’s monetary policy?

Rbi monetary policy: Amid the softening of inflation, the Reserve Bank of India on Friday reduced the major policy rate repo to 5.5 percent for the purpose of accelerating the domestic economy. Know what is special in RBI’s monetary policy from 10 things?

• While presenting the bilateral monetary policy review, RBI Governor Sanjay Malhotra said that a six -member committee of the Monetary Policy Committee (MPC) reduced the repo rate by 0.50 percent to 5.50 percent.

• The RBI has retained the economic growth rate estimate for 2025-26 at 6.5 percent. Geophysical stress and meteorological uncertainty may cause obstacles

• The Reserve Bank announced the reduction of cash reserved ratio by one percent, which will increase cash of Rs 2.5 lakh crore with banks.

• In the current financial year, the estimate of retail inflation has been reduced from four percent to 3.7.

• Despite the global uncertainties, the pace of the Indian economy as expected.

• Interest rate cuts will boost economic growth. Due to the cash being at ‘satisfactory’ level, banks will be able to give the benefit of low interest rate to customers at a rapid pace.

• Foreign exchange reserves enough to meet importeds of more than 11 months at US $ 691.5 billion. The outer region remains strong.

• The current account deficit was low in FY 2024-25; In 2025-26, it will also remain at the management level.

• The RBI Governor said that now MPC will carefully assess income data and emerging landscape to formulate a future policy.

• After one percent cut in repo rate, now limited scope to support increase in monetary policy

Edited by: Nrapendra Gupta