The Reserve Bank of India (RBI) on Friday (December 5) cut the repo rate by 25 basis points to 5.25 per cent, marking the first reduction since its three-phase easing earlier this year, as the central bank moved to support growth amid sharply cooling inflation and a stable macroeconomic backdrop. The RBI also raised FY26 GDP growth estimates to 7.3% from 6.8% earlier. It reduced FY26 CPI inflation forecast to 2% from 2.6% earlier.

The Monetary Policy Committee (MPC) concluded its three-day meeting this morning against a backdrop of cooling inflation, robust GDP growth, the rupee breaching 90 against the dollar, and global geopolitical uncertainties. The RBI has already cut the repo rate by 100 basis points this year, in three tranches beginning February, in response to steadily falling CP

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