New Delhi, Dec 5: The Reserve Bank of India (RBI) on Friday cut the repo rate by 25 basis points, bringing it down to 5.25 per cent, officials said.
The decision was announced after the RBI’s Monetary Policy Committee (MPC) meeting, with the central bank citing the need to support growth while keeping inflation within its target band. The repo rate is the key lending rate at which the RBI provides short‑term funds to commercial banks.
Officials said the rate reduction is expected to ease borrowing costs for businesses and households, potentially boosting investment and consumption. The move comes amid signs of slowing demand and global economic uncertainties.
Analysts noted that the RBI’s stance reflects a balance between sustaining economic momentum and maintaining financial stability. Further policy adjustments will depend on inflation trends and global market conditions in the coming months.
