♦ The Monetary Policy Committee of the Reserve Bank of India (RBI) announced a reduction of 25 basis points in the policy repo rate, bringing it down to 6 percent on 9 APril 2025.

♦ Consequently, the standing deposit facility -SDF rate under the liquidity adjustment facility shall stand adjusted to 5.75 percent and the marginal standing facility – MSF rate and the Bank Rate to 6.25 percent. 

♦ In 2025 February, the MPC lowered the repo rate by 25 basis points.

♦ It was the first reduction since May 2020 and the first revision after two-and-a-half years.

♦ RBI has projected GDP growth for 2025-26 at 6.5 percent.

♦ RBI has said that this downward revision of its earlier assessment of 6.7 percent essentially reflects the impact of global trade and policy uncertainties.