In April 2025, the Reserve Bank of India (RBI) adjusted its monetary policy stance in response to global economic uncertainties. What was the new stance adopted by the RBI?​

Correct option is C

The correct answer is (C) Accommodative

Explanation:

• In April 2025, the Reserve Bank of India (RBI) shifted its monetary policy stance from neutral to accommodative in response to global economic uncertainties.
• This change came along with a 25 basis point cut in the repo rate (from 6.25% to 6%), aiming to support growth amid weakening global demand and risks to India’s economic momentum.
• The move reflects the RBI’s readiness to prioritize economic growth, as inflationary pressures were under control.

Information Booster:

• An accommodative stance means the RBI is prepared to cut rates further or maintain low rates to boost credit, investment, and consumption.
• It signals pro-growth policy, often adopted during periods of global slowdown, weak exports, or financial instability.
• The stance contrasts with restrictive/hawkish policies, which aim to curb inflation by raising interest rates.

Additional Knowledge:

• Restrictive / Hawkish stance → Used when inflation is high; RBI raises interest rates to control liquidity.
• Neutral stance → Neither pro-growth nor anti-inflation; RBI keeps flexibility to move either way.
• Accommodative stance → Supports economic growth; RBI lowers or keeps rates steady.