RBI Interest Rate Result on April 9: ICRA Expects Rate Cut in First MPC of FY26

The Reserve Bank of India (RBI) commenced its bi-monthly meeting on Monday, April 7, to review and set the key benchmark interest rates, or repo rates. RBI MPC will mark the first monetary policy session for the FY2025- 26 and will determine the central bank’s lending rates, with the decision to be announced on Wednesday, April 9, 2025.

RBI MPC Timelines

The RBI holds its Monetary Policy Committee (MPC) meeting every 2 months, totaling 6 meetings per financial year, where interest rates are adjusted based on factors like money supply, inflation expectations, and other macroeconomic indicators.

As the RBI prepares for this MPC meeting, experts expect that the central bank may lower its repo rates for the second consecutive time since Governor Sanjay Malhotra assumed office, following the rate cut in the February 2025 MPC meeting.

In February 2025, the MPC, led by Governor Malhotra, reduced the key benchmark interest rate by 25 basis points, lowering it from 6.5% to 6.25%. This marked the first rate cut in nearly two and a half years, a move delayed due to inflationary pressures.

ICRA Anticipates Interest Rate Cut

The rating agency ICRA has also projected that the committee will reduce rates by 25 basis points in the upcoming announcement, maintaining a “neutral stance” for the Indian economy.

ICRA further stated that while the central bank is likely to continue its liquidity interventions to offset upcoming drains from the unwinding of short positions in its forward book and the maturity of long-tenure VRRs (Variable Rate Repo), they do not anticipate significant announcements regarding liquidity injections, such as a CRR cut during this MPC meeting.

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