THE JHARKHAND STORY DESK
Mumbai, Feb 7: The three-day meeting of the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC), which began on February 5, concluded today.
Following the meeting, RBI’s new Governor Sanjay Malhotra announced a 0.25% cut in the interest rate after 56 months (after May 2020). With this reduction, the repo rate has dropped from 6.50% to 6.25%.
This decision will bring significant relief to millions of home and car loan borrowers across the country, as it will lead to a reduction in their EMI payments.
GDP growth rate projected at 6.7% for FY 2026
According to the RBI Governor, the country’s growth rate could reach 6.7% in the financial year 2026. He estimated a growth rate of 6.7% for the first quarter, which could rise to 7% in the second quarter. For the third and fourth quarters, the RBI has projected a GDP growth rate of 6.5%.
Also Read- Celsius dips across Jharkhand
In the previous MPC meeting held in December, the RBI had estimated a growth rate of 6.9% for the first quarter and 7.3% for the second quarter. However, this time, a reduction of 20 to 30 basis points has been made in both quarters.
Inflation projected at 4.8% for current fiscal year
The RBI has also released inflation projections. Governor Sanjay Malhotra estimated that inflation would remain at 4.8% in the current financial year. However, inflation for the fourth quarter has been revised upward by 10 basis points, increasing from 4.4% to 4.5%.
For the financial year 2026, inflation is projected to be 4.2%, with the first quarter expected to be at 4.6%.
Previously, the RBI had estimated first-quarter inflation at 4.5%. The projections for the subsequent quarters are 4% for the second quarter, 3.8% for the third quarter, and 4.2% for the fourth quarter.
