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GS3 · Monetary policy

RBI cuts repo to 6%

1 min readRBI & Monetary Policy
Battle IAS current affairs title card: RBI cuts repo to 6% (GS3 · Monetary policy, 9 April 2025)
Asked by UPSCMains 2024 (GS3)1 PYQ

UPSC has already asked about this. Read the story with these questions in mind.

What happened

  • The MPC unanimously cut the repo rate by 25 bps to 6% [PIB].

Background

  • It projected 6.5% GDP growth for 2025-26 [PIB].

Why it matters

  • A lower repo rate is meant to make loans cheaper when the outlook is uncertain.

How to use this in Mains

GS-III Indian economy: mobilisation of resources, banking and inclusive growth

  1. As per PIB (2025-04-09): the MPC unanimously cut the repo rate by 25 bps to 6%.
  2. A lower repo rate is meant to make loans cheaper when the outlook is uncertain.
Quotable data point

The MPC unanimously cut the repo rate by 25 bps to 6%.

PIB: RBI policy April, 9 Apr 2025

Exam angle

UPSC

Prelims: repo.

Practice MCQs

Original practice questions (not PYQs).

Practice · UPSC

Repo after April 2025 MPC

Answer (b) & explanation

PIB.

Go deeper

ExplainerReserve Bank of India: History, Structure, Functions, Monetary Policy Committee, Surplus Transfer and the Autonomy Debate (UPSC Notes + PYQs)ExplainerMonetary Policy in India: Objectives, Monetary Policy Committee, Tools (Repo, CRR, SLR, OMO) and Transmission (UPSC Notes + PYQs)

Official source: PIB: RBI policy April, 9 Apr 2025

facts from cited sources only; faculty review pending