Monetary Policy Committee (MPC) meeting 2025

Current Context: The Monetary Policy Committee (MPC) meeting took place from February 5 to 7, 2025, at the Reserve Bank of India (RBI) headquarters in Mumbai.

• The meeting was organized by the RBI and chaired by the newly appointed Governor Sanjay Malhotra.
• Here are the key highlights:
• Repo Rate Cut: The MPC decided to cut the repo rate by 25 basis points to 6.25%.
• Neutral Stance: The committee maintained a neutral monetary policy stance, focusing on aligning inflation with the target while supporting economic growth.
• GDP Growth Projections: The RBI projected GDP growth for FY26 at 6.7%.
• Inflation Forecasts: CPI inflation for FY25 is projected at 4.8%, with FY26 at 4.2%.

Question:

1. What is the CPI inflation forecast for FY25, as projected in the Monetary Policy Committee (MPC) meeting 2025?

• A) 5.2%
• B) 4.5%
• C) 4.8%
• D) 4.0%

Answer: C) The RBI projected Consumer Price Index (CPI) inflation for FY25 at 4.8%, aiming to keep inflation within the target range while fostering economic stability.