RBI MPC Hits Brake Again, Repo Rate Unchanged at 6.5%; Here are the Top Highlights

Outlook Business Desk

RBI Governor Shaktikanta Das-headed Monetary Policy Committee decided to maintain the repo rate at 6.5%. The decision was made with a majority vote of 4:2.

Check out the key highlights of the meeting-

GDP Growth

While Q2 GDP growth figure came in below expectations, the trajectory for upcoming quarters remains optimistic.

For FY25, the estimations stand at 6.6%.

Q3FY25:  6.8%

Q4FY25: 7.2%

Q1FY26: 6.9%

Q2FY26: 7.3%

CPI Inflation

RBI has raised retail inflation forecast to 4.8% for FY25, from 4.5% earlier.

Q3FY25: 5.7%

Q4FY25: 4.5%

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CRR Cut

The RBI slashed cash reserve ratio by 50 basis points to 4%.

The central bank reduced the cash reserve ratio to 4% from 4.5%; will make available Rs 1.16 lakh crore liquidity for banks: RBI Governor

Liquidity

Growth Remains Priority

Maintaining price stability and growth is very important, Governor Shaktikanta Das said during the MPC meet

Agriculture Loans

The limit for collateral free agriculture loans has been increased from Rs 1.6 lakh crore per borrower to Rs 2 lakh per borrower