The outcome of the RBI’s first Monetary Policy Committee (MPC) meeting for the financial year 2025–26 has been announced today, confirming a 25 basis point cut in the repo rate, bringing it down to 6%. This rate cut was widely anticipated by experts.
The RBI’s Monetary Policy Committee (MPC) has shifted its stance from ‘neutral’ to ‘accommodative’, a move that could lead to lower home loan interest rates. Currently, the marginal standing facility rate is at 6.25 percent.
In its most recent monetary policy announcement, the RBI’s Monetary Policy Committee (MPC) lowered the benchmark repo rate by 25 basis points—from 6.5% to 6.25%—marking the first rate cut in nearly five years. The committee opted to maintain a neutral policy stance.
RBI to Introduce Unified Regulations for Gold Loans
In an effort to standardize regulations across all regulated entities (REs) while considering their risk-bearing capacities, and to address certain emerging concerns, the Reserve Bank has decided to introduce comprehensive guidelines. These will cover prudential norms and conduct-related aspects for loans secured by gold jewellery and ornaments.
Commenting on RBI MPC Umeshkumar Mehta, CIO, SAMCO Mutual Fund said
“RBI’s Monetary Policy outcome was inline with consensus estimates and a 25 bps rate cut should augur well both for the financial system and the economy. Given the ongoing tariff war across the world, an accommodative stance along with a stable inflationary scenario would ensure buoyant credit growth and support our domestic environment. The rate cut is indeed positive for our bond markets but the ongoing pressure on the US bond yield restricts the full extent of the impact in India.”
