RBI Governor Sanjay Malhotra has announced that the Monetary Policy Committee (MPC) has decided to cut the benchmark repo rate by 6.5%

Monetary Policy Committee cuts repo rate by 25 basis points to 6.25% due to easing inflation and slowing growth.

T he Reserve Bank of India (RBI) on Friday announced a 25 basis points (bps) cut in the policy repo rate, with the Monetary Policy Committee (MPC) voting unanimously in favour of the decision. The MPC also decided to maintain a ‘neutral’ stance while reiterating its commitment to bringing inflation within the target range on a durable basis.

The RBI's Monetary Policy Committee, led by new Governor Sanjay Malhotra, cut the repo rate by 25 basis points to 6.25%, maintaining a neutral stance. This change follows eleven meetings with an unchanged rate.

The former revenue secretary in the Ministry of Finance, Malhotra is expected to announce the cuts to lower interest rates for economy’s growth which is expected to reach a four year low.

The RBI may have taken comfort from the tax cuts proposed in the Budget, which will offer some relief to the common man without hurting the fiscal math, as the deficit for FY26 has been pegged at 4.4 percent.

India's central bank is widely expected to cut interest rates for the first time in nearly five years in Governor Sanjay Malhotra's first monetary policy review on Friday, aiming to boost economic growth which is seen falling to a four-year low.