Millions of borrowers across India are set to receive some financial relief after the Reserve Bank of India (RBI) announced a 25 basis point repo rate cut, reducing the benchmark lending rate to 5.25%. The Monetary Policy Committee (MPC), chaired by Governor Sanjay Malhotra, voted unanimously for the move, projecting a more comfortable inflation outlook and stronger economic growth for 2025–26.

The financial markets reacted sharply on Friday as the Reserve Bank of India (RBI) unveiled a 25 basis point repo rate cut, bringing the policy rate down to 5.25%. The Monetary Policy Committee (MPC), led by Governor Sanjay Malhotra, voted unanimously to ease the RBI policy rate, marking its most decisive move yet to sustain India’s growth momentum amid record-low inflation.

In a significant policy move aimed at stabilizing the economy while supporting household spending, the Reserve Bank of India (RBI) has reduced the repo rate by 25 basis points to 5.25%, marking the second major repo rate cut this year. RBI Governor Sanjay Malhotra announced the decision after a unanimous vote by the Monetary Policy Committee (MPC), asserting that the central bank is prioritising economic momentum amid historically low inflation.