The Reserve Bank of India (RBI) on Friday cut the repo rate by 25 basis points to 5.25% and reaffirmed its neutral stance, signalling a clear shift toward supporting growth as inflation stays well within its comfort zone.

Governor Sanjay Malhotra described the current macroeconomic backdrop as a “rare Goldilocks period”, marked by strong activity and controlled inflation, enabling the central bank to open the policy taps without stoking macro instability.

Alongside the rate cut, the RBI announced ₹1 lakh crore of open market operation (OMO) purchases in government securities for December, as well as a $5 billion three-year dollar-rupee buy-sell swap — a combination that analysts see as an unambiguously liquidity-enhancing package. Headline and core inflation are projected to stay at or

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