Thiruvananthapuram, Mar 21 (PTI) The central board of the Reserve Bank of India (RBI) on Friday reviewed the emerging global and domestic economic landscape and also approved the bank's budget for 2025-26.

The 614th meeting of the central board of directors of RBI was held here under the chairmanship of Governor Sanjay Malhotra.

"The Board assessed the emerging global and domestic economic landscape, including the evolving geopolitical and financial market developments and associated challenges," RBI said in a statement.

Further, it said, the board discussed the Reserve Bank’s activities during the current 2024-25 and also approved the Bank’s budget for 2025-26.

RBI's Deputy Governors M Rajeshwar Rao, T Rabi Sankar, Swaminathan J and other directors of the central board -- Satish K Marathe, Revathy Iyer, Sachin Chaturvedi and Ravindra H Dholakia -- attended the meeting.

RBI in its last bi-monthly policy slashed policy rate by 25 basis points to 6.25 per cent, the first cut in five years.

The 25 basis points rate cut to 6.25 per cent comes after the last rate reduction in May 2020. The last revision of rates happened in February 2023 when the policy rate was hiked by 25 basis points to 6.5 per cent.

The rate increase cycle was paused in April 2023 after six consecutive rate hikes, aggregating to 250 basis points since May 2022. The last rate hike was done by RBI in February 2023.

The next meeting of Monetary Policy Committee is scheduled for April 7-9. PTI DP DP MR

Central bank budget approval follows economic landscape review and accompanies recent monetary policy easing ahead of the next policy meeting. The central bank board assessed the global and domestic economic landscape and approved the bank's budget for the next financial year, reviewed the Reserve Bank's activities for the current year, and noted recent monetary policy developments including a recent policy rate reduction and the schedule for the next Monetary Policy Committee meeting.