MPC meets to spur economic growth amid heightened uncertainty

The meeting of the monetary policy committee (MPC) of the Reserve Bank of India (RBI) started on Monday to set the policy rate and decide on other instruments amid fears of high inflation and low growth in the major economies of the world due to the imposition of tariffs by the Donald Trump administration in the US.

- YASH KUMAR SINGHAL

The committee is widely expected to cut the repo rate in line with its previous decision, which perhaps reflected the change of guard at the RBI even though the decisions are taken on a majority vote of the six-member panel.

The Economic Survey has projected economic growth at 6.3-6.8 per cent for FY26 against 6.5 per cent for FY25 as pegged by second advance estimates.

The MPC at its February policy projected economic growth at 6.7 per cent for the current financial year.

However, much has changed since then with Trump's decision on tariffs.