New Delhi/Mumbai, December 5 (Daily Kiran) – The Reserve Bank of India (RBI) has reduced the key policy rate repo rate by 0.25 percent, bringing it down to 5.25 percent. RBI Governor Sanjay Malhotra announced the decisions of the Monetary Policy Committee (MPC) on Friday after the committee’s review meeting. Along with this, the economic growth forecast has been revised upward from 6.8 percent to 7.3 percent, while the inflation estimate has been reduced from 2.6 percent to 2 percent.
RBI Governor Sanjay Malhotra, while briefing about the decisions taken in the three-day 5th bi-monthly MPC meeting that began on December 3, said that the MPC unanimously decided to reduce the key policy rate repo rate by 0.25 percent to 5.25 percent.
In his address, Governor Sanjay Malhotra said this decision was necessary to boost growth. He stated that the Reserve Bank made this policy rate cut amid strong economic growth and easing inflation. Malhotra said that along with this, the RBI has revised the economic growth forecast for the current financial year 2025-26 upward from 6.8 percent to 7.3 percent. Additionally, the inflation forecast has been reduced from 2.6 percent to 2 percent.
It is noteworthy that the RBI had cut the repo rate by a total of 1 percent from February to June, but had made no changes in the last two meetings (August and September-October). After this cut, the repo rate has decreased from 5.50 percent to 5.25 percent. This decision by the central bank is likely to reduce EMIs for home loans and other loans, which will ease the financial burden on people.
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