Mumbai: RBI Governor Sanjay Malhotra will announce the first bi-monthly monetary policy of the current fiscal on Wednesday, the central bank said, amid expectations of a 25 basis points reduction in the short-term lending rate.

RBI’s Monetary Policy Committee (MPC) headed by Governor Malhotra started its three-day deliberations on the next set of credit policy on Monday. In February, the MPC slashed the repo rate by 25 basis points to 6.25 per cent. It was the first reduction since May 2020 and the first revision after two-and-a-half years.

Experts are of the view that the RBI will again reduce the rate by 25 bps on Wednesday against the backdrop of moderating inflation and the need to stimulate growth as Trump tariffs pose severe challenges to the global economy.