In a rare policy move, the Reserve Bank of India’s Monetary Policy Committee (MPC) on December 5 cut the repo rate by 25 basis points to 5.25%, despite the economy recording strong GDP growth above 8.2% and consumer inflation plunging to 0.25%.

According to the latest Ecowrap report by SBI Research, the MPC’s unanimous vote signals its intent to stay ahead of emerging global uncertainties while continuing to support domestic growth. The stance remains neutral, with the Standing Deposit Facility (SDF) rate revised to 5.00% and the Marginal Standing Facility (MSF) rate and Bank Rate to 5.50%. The CRR remains at 3.0%. Advertisement

Inflation projection slashed dramatically

Citing lower food inflation, robust kharif output, healthy rabi sowing, and comfortable reservoir levels, the RBI sha

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