In a significant shift in its monetary policy stance, the Reserve Bank of India (RBI) on Friday lowered the policy repo rate by 25 basis points to 5.25%, marking its fourth rate reduction this year. The move signals the central bank’s growing confidence in easing inflationary pressures and its intent to support growth as economic momentum strengthens heading into 2026. Advertisement
Announcing the decision at the end of the three-day Monetary Policy Committee (MPC) meeting held from December 3 to 5, RBI Governor Sanjay Malhotra said the panel had unanimously agreed on the rate cut after evaluating macroeconomic trends and inflation expectations. “After a detailed assessment of the evolving macroeconomic conditions and the outlook, the MPC voted unanimously to reduce the policy repo rate

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