- KR Bharat
- 2025-12-05
The Reserve Bank of India reduced the repo rate by 25 basis points to 5.25% in its fifth bi-monthly monetary policy review. The move comes amid historic low retail inflation, which fell to 0.25% in October 2025, and robust economic growth of 8.2% in Q2.
Despite concerns over the rupee depreciating past 90 per dollar, the MPC retained a neutral stance, focusing on boosting credit growth. The rate cut is expected to make housing, auto, and commercial loans cheaper.
With inflation consistently below the 4% target band and consumption pressures easing, the RBI upgraded the GDP growth forecast for the year to 7.3%, up from 6.8%.
