New Delhi: Reserve Bank of India (RBI) Governor sanjay Malhotra on Friday announced that Monetary Policy Committee unanimously decided to slash repo rate by 25 basis points to 5.25 per cent. “After a detailed assessment of the evolving macroeconomic and financial developments and the outlook, the MPC voted unanimously to reduce the policy reporate under the liquidity adjustment facility (LAF) to 5.25 per cent,” the RBI Governor said while announcing the outcome of the MPC meeting.

With the latest announcement, the RBI has reduced slashed repo rate by 120 points in four tranches in 2025.

Malhota announced the repo rate cut while releasing the Reserve Bank of India’s bi-monthly monetary policy after the Monetary Policy Committee concluded its three-day review that began on Wednesday. The announcement cam eamidst declining inflation, good GDP growth, the rupee breaching 90 against the US dollar, and heightened geopolitical tensions.

• Lower inflation, 8 per cent GDP growth in H1 present ‘goldilocks’ period, RBI Governor Sanjay Malhotra said.


• Since October policy, Indian economy has witnessed rapid disinflation, said the RBI Governor.


• Rate-setting panel decidedto continue with the ‘neutral’ monetary policy stance, he added.


• RBI to conduct open market operations of Rs 1 lakh crore, RBI Governor Sanjay Malhotra said.


• Growth inflation balance on both headline, core inflation continues to provide policy space for growth, the RBI Governor said.


• RBI raised India’s GDP projection to 7.3 per cent for FY26 from 6.8 per cent earlier.


• “In India, real gross domestic product (GDP) registered a six-quarter high growth of 8.2 per cent in Q2:2025-26. The real GDP growth for 2025-26 is projected at 7.3 per cent, with Q3 at 7.0 per cent; and Q4 at 6.5 per cent. Real GDP growth for Q1:2026-27 is projected at 6.7 per cent and Q2 at 6.8 per cent (Chart 1). The risks are evenly balanced,” he said.


• “Looking ahead, domestic factors such as healthy agricultural prospects, continued impact of GST rationalisation, benign inflation, healthy balance sheets of corporates and financial institutions and congenial monetary and financial conditions should continue to support economic activity. Continuing reform initiatives would further facilitate growth,” Malhotra added.

• Headline CPI inflation declined to an all time low in October 2025. RBI lowers inflation projection to 2 per cent for current fiscal from 2.6 per cent earlier. Excluding gold, core inflation moderated to 2.6 per cent in October. Overall, the decline in inflation has become more generalised, the RBI governor said.


• Current account deficit to remain ‘modest’ in current fiscal, Malhotra said


• Manufacturing activities continue to improve while services maintaining steady growth, the RBI Governor added.


• India’s forex reserves at USD 686 billion, sufficient to cover 11 months of imports, malhotra informed.