The RBI is expected to encounter a trilemma encompassing tighter liquidity conditions, depreciating rupee and heightened geopolitical uncertainty. Economists expect RBI to begin monetary easing cycle and announce its first repo rate cut in five years.

The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) is responsible for setting the nation’s key interest rates, particularly the repo rate, which influences borrowing costs across the economy.

This is the first meeting of the panel under the leadership of RBI Governor Sanjay Malhotra, who assumed office in December 2024 following the end of Shaktikanta Das' tenure.