RBI MPC Highlights: RBI reduced inflation forecast to 3.1 percent, know 5 important things about MPC meeting:

News Topical, Digital Desk : RBI Repo Rate Cut: After the three-day meeting of the RBI Monetary Committee on Wednesday, Governor Sanjay Malhotra has announced no change in the repo rate. Along with this, he has maintained the GDP growth rate at 6.5 percent during the current financial year (2025-26). Also, the central bank has reduced the inflation forecast from 3.7 percent to 3.1 percent.

Let us know five important things about Governor Sanjay Malhotra-

1. Sharing the third bi-monthly monetary policy decision for FY 2025-26, RBI Governor Sanjay Malhotra said that better than normal southwest monsoon, low inflation, increased capacity utilization and favorable financial conditions are supporting domestic economic activity. Supportive monetary, regulatory and fiscal policies, including strong government capital expenditure, are also expected to boost demand. The services sector is also expected to maintain momentum in the coming months due to continued growth in construction and trade.

2. Governor Sanjay Malhotra said that the growth rate is strong and remains in line with estimates. However, it is less than our aspirations. Fee uncertainties still remain. The benefits of monetary policy are still being received. The impact of one percent reduction in repo rate from February 2025 is still continuing on the economy.

3. The RBI governor said that domestic growth is stable and is moving broadly as per estimates. However, some high-frequency indicators (such as GST collection, exports, electricity consumption, etc.) have given mixed signals in May-June. Malhotra said that rural consumption has remained stable, while urban consumption has seen improvement, especially discretionary expenditure is slow.

4. Sanjay Malhotra said that long-standing geopolitical tensions, global uncertainties and adverse conditions arising from instability in global financial markets are posing risks to the growth scenario. The Governor said, "Taking into account all these factors, the real GDP growth rate for 2025-26 is estimated to be 6.5 percent." Under this, growth is estimated to be 6.5 percent in the first quarter, 6.7 percent in the second quarter, 6.6 percent in the third quarter and 6.3 percent in the fourth quarter. At the same time, the real GDP growth rate for the first quarter of the financial year 2026-27 is estimated to be 6.6 percent. The risks are equally balanced on both sides.

5. On inflation, the governor said that the Consumer Price Index (CPI) based inflation fell for the eighth consecutive month to a 77-month low of 2.1 percent in June. This decline in inflation rate is mainly due to a sharp decline in food inflation. He said, "The inflation forecast for 2025-26 has been more favorable than expected in June."