The Reserve Bank of India could consider further repo rate cuts if GDP growth underperforms and the US Federal Reserve adopts aggressive easing. HSBC Mutual Fund says liquidity will stay ample, with corporate bonds offering attractive spreads
RBI Governor Sanjay Malhotra announced a 50 bps repo rate cut to 5.5% amid falling inflation, now at 3.2%. The central bank also slashed CRR by 100 bps in phases, while shifting its policy stance from accommodative to neutral.
As of April 9th, 2025, the RBI reduced the repo rate by 25 basis points (bps). It brought it down from 6.25% to 6.00%. This is the second reduction in 2025, with the previous cut also being 25 bps in February 2025.
According to an SBI report, With RBI’s 50 basis points cumulative reduction in policy rates, transmission of the rate cut by banks is expected in the coming quarters
The 30-share BSE Sensex climbed 364.06 points or 0.55 per cent to settle at 65,995.63. During the day, it jumped 464.24 points or 0.70 per cent to hit 66,095.81
Reserve Bank of India has decided that the standing deposit facility (SDF) will remain unchanged at 6.25 per cent and the marginal standing facility (MSF) and bank rates unchanged at 6.75 per cent.
Economic experts expect the MPC to hike the repo rate by 25-35 basis points (bps) with industry lobby body ASSOCHAM also urging the central bank to do the same.