{"id":2479,"date":"2025-02-07T10:09:27","date_gmt":"2025-02-07T04:39:27","guid":{"rendered":"https:\/\/www.torusdigital.com\/toruscope\/?p=2479"},"modified":"2025-08-26T17:37:57","modified_gmt":"2025-08-26T12:07:57","slug":"first-monetary-policy-of-new-rbi-governor-what-to-expect","status":"publish","type":"post","link":"https:\/\/www.torusdigital.com\/toruscope\/tax\/first-monetary-policy-of-new-rbi-governor-what-to-expect\/","title":{"rendered":"First Monetary Policy of New RBI Governor: What to Expect"},"content":{"rendered":"

[vc_section el_id=”blog-inner-layout”][vc_row overlay_dotted=””][vc_column el_class=”blog_primary”][vc_row_inner][vc_column_inner][vc_column_text css=””]The newly appointed Governor of the Reserve Bank of India (RBI), Sanjay Malhotra, will announce this year’s monetary policy on February 7, 2025. The upcoming Monetary Policy Committee meeting is significant, as it will mark the Governor’s first policy review amid ongoing economic challenges and high expectations.<\/p>\n

 <\/p>\n

Historically, monetary policy has had a significant impact on financial markets. By analysing past trends and considering various factors, we can assess the expectations of the RBI monetary policy 2025.<\/p>\n

So, stay tuned to this blog to gain insights!<\/strong><\/p>\n

<\/span>Will RBI Announce a Rate Cut?<\/span><\/h2>\n

In the upcoming meeting of the Monetary Policy Committee (MPC), RBI is expected to announce a cut in the repo rate by 25 basis points. If so, it would be the first interest rate cut since 2020. However, these changes will remain finely balanced.<\/p>\n

 <\/p>\n

Several factors support rate cuts, including slow economic growth, the government\u2019s advance estimates, and efforts to boost banking system liquidity. Given the global uncertainties, the central bank may instead prioritise liquidity measures and defer the decision until the April policy review.<\/p>\n

 <\/p>\n

In the past week, RBI announced plans to put\u00a0 \u20b91.5 lakh crore into the banking system after injecting \u20b91.16 lakh crore by 50 basis points reduction in the cash reserve ratio. Further, inflation is a persistent challenge. It remains above the RBI\u2019s medium-term target of 4%, and the increasing trade-related issues globally make it worse economically.<\/p>\n

 <\/p>\n

The recently announced budget indicates a downward trend in interest rates. However, from a wider perspective, things seem clear, so the precise timing of the next cut remains uncertain.<\/p>\n

<\/span>Key Factors Influencing a Repo Rate Cut Decision<\/span><\/h2>\n

While a repo rate cut is one of the major expectations of the RBI monetary policy 2025, it\u2019s important to note that several factors can influence this decision. The following are key elements that will significantly impact the outcome.<\/p>\n