US EditionRBI Monetary Policy 2025 LIVE: Sanjay Malhotra-Led MPC Cuts Repo Rate by 25 Bps to 5.25%; Ups FY26 GDP Growth Estimates
The Reserve Bank of India lowered the repo rate by 25 basis points to 5.25% to support growth amid revised inflation down to 2%, with GDP forecast raised to 7.3%.
- On December 5, Reserve Bank of India Governor Sanjay Malhotra announced the Monetary Policy Committee cut the repo rate to 5.25% and kept a Neutral monetary policy stance.
- Driven by robust Q2 FY2026 growth at 8.2, the MPC's regular two-month review followed two unchanged meetings at 5.5%.
- The RBI adjusted its lending and deposit corridors, setting the Standing Deposit Facility /STF rate at 5% and the Marginal Standing Facility and bank rate at 5.5%, noting the repo rate is the lending rate to commercial banks.
- The MPC revised its inflation forecast for FY2025-26 to 2% from 2.6% and raised its GDP forecast for the current year to 7.3% from 6.8%.
- Against a weakening rupee, which breached the Rs 90 mark on Wednesday, merchandise exports contracted while imports rose, but strong services exports, remittances and foreign investment flows should keep the current account deficit modest.
26 Articles
26 Articles
RBI cuts repo rate by 25 bps to 5.25% as inflation provides a headroom
The Reserve Bank of India's Monetary Policy Committee has reduced its key repo rate by 25 basis points to 5.25%. This move comes as inflation projections are softer and growth estimates for the fiscal year are higher. The central bank aims to support economic activity while maintaining stability. Open market operations will inject liquidity into the banking system.
MPC meet: Low inflation, high growth - why did RBI still cut repo rate? Sanjay Malhotra explains
The Reserve Bank of India has reduced the repo rate by 25 basis points to 5.25%, citing benign inflation and a resilient economy. Despite a strong GDP growth forecast of 7.3% for the fiscal year, the central bank sees potential softening ahead. This move aims to support growth momentum while ...
Monetary policy Committee decided unanimously to cut policy rate by 25 bps to 5.25 pc: RBI Governor Sanjay Malhotra.
Monetary policy Committee decided unanimously to cut policy rate by 25 bps to 5.25 pc: RBI Governor Sanjay Malhotra. Monetary policy Committee decided unanimously to cut policy rate by 25 bps to 5.25 pc: RBI Governor Sanjay Malhotra.
The Reserve Bank of India has taken a major decision. It has cut the repo rate by 25 basis points. RBI Governor Sanjay Malhotra said, "We are implementing the repo rate cut with immediate effect."
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