New Delhi: The Reserve Bank of India (RBI) on Friday announced a 25 basis points reduction in the policy repo rate, bringing it down to 5.25% with immediate effect. The decision was made after the conclusion of the three-day Monetary Policy Committee (MPC) meeting held from December 3 to 5.

RBI Governor Sanjay Malhotra said the MPC conducted a “detailed assessment of evolving macroeconomic conditions and outlook” before unanimously deciding on the rate cut. He added,

“The MPC met on the 3rd, 4th, and 5th of December to deliberate and decide on the policy repo rate. After a detailed assessment of the evolving macroeconomic conditions and outlook, the MPC voted unanimously to reduce the policy repo rate by 25 basis points to 5.25 per cent, with immediate effect.”

Why the rate cut was anno

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