New Delhi: The Reserve Bank of India has cut the policy repo rate by 25 basis points to 5.25 per cent, a move that immediately lowers borrowing costs for millions of consumers and businesses.

The decision followed the three-day Monetary Policy Committee meeting held from 3 to 5 December, during which the panel unanimously assessed macroeconomic conditions and concluded that a rate reduction was warranted.

Why the RBI cut the repo rate

RBI Governor Sanjay Malhotra said the MPC carried out a detailed assessment of the economic environment before voting on the reduction. The rate cut aligns with strong economic indicators: GDP growth reached 8.2 per cent in the second quarter, and retail inflation eased to 0.25 per cent in October 2025, according to the Ministry of Statistics and Pro

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