RBI board assesses economic landscape and geopolitical challenges; approves Budget for FY 2025-26

The central board of the Reserve Bank of India (RBI) on Friday assessed the emerging global and domestic economic landscape during its meeting in Thiruvananthapuram.

The meeting, chaired by RBI Governor Sanjay Malhotra, focussed on geopolitical developments, financial market trends, and associated challenges, the central bank said in a statement.

The board also approved the RBI’s budget for 2025-26.

“The board reviewed the evolving global and domestic economic landscape, focusing on geopolitical developments, financial market trends, and associated challenges,” the RBI stated.

“The meeting also covered the RBI’s activities for the current accounting year 2024-25, with the board approving the bank’s budget for the upcoming accounting year 2025-26,” it added.

The meeting was attended by Deputy Governors M. Rajeshwar Rao, T. Rabi Sankar, and Swaminathan J., and other directors of the central board, including Satish K. Marathe,. Revathy Iyer. Sachin Chaturvedi, and Ravindra H. Dholakia.

RBI in its last bi-monthly policy slashed policy rate by 25 basis points to 6.25 per cent, the first cut in five years.

The 25 basis points rate cut to 6.25 per cent comes after the last rate reduction in May 2020. The last revision of rates happened in February 2023 when the policy rate was hiked by 25 basis points to 6.5 per cent.

The rate increase cycle was paused in April 2023 after six consecutive rate hikes, aggregating to 250 basis points since May 2022. The last rate hike was done by RBI in February 2023.

The next meeting of the Monetary Policy Committee is scheduled for April 7-9