Highlights of the April monetary policy

• MPC voted unanimously to cut policy rates by 25 bps. The repo rate is now 6.00%, standing deposit facility rate 5.75% and marginal standing facility (MSF) rate is 6.25%
• The committee decided to change its stance to ‘accommodative’ from ‘neutral’
• It reduced its forecast for inflation based on the Consumer Price Index (CPI) to 4.0% in fiscal 2026 from 4.2% projected in February 2025
• MPC revised down its forecast for India’s gross domestic product (GDP) growth to 6.5% in fiscal 2026 from 6.7% projected in February