New Delhi: The Reserve Bank of India reduced its key repo rate by 25 basis points on Friday, bringing it down to 5.25 percent. The move was widely expected as inflation continues to ease and economic growth remains strong.

The decision was taken unanimously by the Monetary Policy Committee, which kept its policy stance neutral. The central bank said the rate cut was aimed at supporting demand and ensuring financial stability as inflation trends remain soft.

RBI officials said inflation had moderated faster than expected, falling to around 0.25 percent in recent months. With prices stabilizing, the central bank revised its inflation forecast for the next financial year from 2.6 percent to 2.0 percent.

At the same time, growth numbers remain positive. The RBI updated its growth outlook

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