The Reserve Bank of India’s (RBI) central board has sanctioned the budget for the financial year 2025-26, setting the course for the institution’s key priorities and policies in the coming year. The decision was made during the 614th board meeting, chaired by RBI Governor Sanjay Malhotra, where members also assessed the central bank’s operations for the ongoing fiscal year 2024-25.
Amid discussions on the prevailing global and domestic economic landscape, the board analysed geopolitical developments and financial market trends that could impact India’s economy. The RBI reaffirmed its commitment to addressing emerging challenges while fostering sustainable economic growth.
A major highlight of the meeting was the recent reduction in the RBI’s policy rate—the first in five years. In its latest bi-monthly monetary policy review, the central bank cut the policy rate by 25 basis points to 6.25 per cent, following a series of rate hikes since May 2022 that totaled 250 basis points. This shift in monetary policy aims to balance economic recovery with inflation control amid ongoing global uncertainties.
The next Monetary Policy Committee (MPC) meeting is scheduled for April 7-9, where further policy deliberations will take place.
Key attendees at the meeting included Deputy Governors M. Rajeshwar Rao, T. Rabi Sankar and Swaminathan J., along with central board directors Satish K. Marathe, Revathy Iyer, Sachin Chaturvedi and Ravindra H. Dholakia. Their collective expertise contributed to discussions on economic resilience and policy planning.
The RBI’s strategic approach underscores its role in navigating complex financial conditions while ensuring stability and growth. By proactively addressing both short-term challenges and long-term economic objectives, the central bank continues to shape India’s financial trajectory in an evolving global landscape.
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