RBI Cuts Repo Rate to 6%

On 9th April 2025, the Reserve Bank of India reduced the repo rate by 25 basis points to 6 percent to cushion the economy against global disruptions triggered by escalating trade tensions.

The Monetary Policy Committee (MPC) unanimously decided to reduce the repo rate after a three-day meeting held on 7^th, 8^th and 9^th April citing evolving global and domestic economic conditions.
This is the second consecutive rate cut in recent months, following a reduction from 6.5 percent to 6.25 percent announced on 7^th February.
The central bank also revised the Standing Deposit Facility (SDF) rate to 5.75 percent and the Marginal Standing Facility (MSF) and Bank Rate to 6.25 percent under the Liquidity Adjustment Facility framework.
The decision comes amid a weakening US dollar and increased global volatility, which the Governor described as adding headwinds to inflation and growth prospects worldwide.