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RBI Monetary Policy Meeting: Announcing the results of the RBI MPC meeting, Governor Sanjay Malhotra said that India’s FY26 real GDP growth estimate has been increased to 7.3 percent, which is 0.5 percent more than before.
RBI Monetary Policy Meeting: The Reserve Bank of India (RBI) has increased the GDP growth estimate. Now RBI is assuming 7.3 percent growth for the current financial year 2025-26, whereas earlier this estimate was 6.8 percent. This means that the central bank is hopeful that the Indian economy can gain more momentum than before.
Announcing the results of the Monetary Policy Committee (MPC) meeting of RBI, Governor Sanjay Malhotra said that India’s real GDP growth estimate for the financial year 2025-26 (FY26) has been increased to 7.3 percent. Earlier this estimate was 6.8 percent. The growth rate is said to be 7 percent in the October-December 2025 quarter and 6.5 percent in the January-March 2026 quarter. Whereas the growth rate has been estimated to be 6.7 percent in the April-June 2026 quarter and 6.8 percent during July-September 2026.
Signs of increase in economic activities in the third quarter
Malhotra said that important figures are indicating an increase in economic activities in the third quarter of the current financial year. Factors like better prospects in agriculture, steps to rationalize GST, better balance sheets of companies will continue to support economic activities.
RBI cuts repo rate by 0.25 percent
Let us tell you that the Reserve Bank of India, taking an important decision in its credit policy, has reduced the repo rate by 0.25 percent. With this, the repo rate has come down from 5.50 percent to 5.25 percent. This decision has come at a time when inflation is at a record low level. Malhotra said that due to strong growth and softening of inflation, there is scope for cutting the policy interest rate. MPC unanimously decided to reduce the repo rate by 0.25 percent.
Repo rate reduced by 1.25 percent from February 2025 till now
RBI has reduced the repo rate by a total of 1.25 percent in 4 installments from February 2025 till now. However, there was no change in the repo rate in the meetings of August and October. It was left as it was at 5.5 percent.
