RBI slashes repo rate by 25 basis point

The Reserve Bank of India (RBI) has cut the repo rate by 25 basis points to 6.25 per cent. This is the first rate cut in nearly five years, since 2020, amid slowing growth projections. As per RBI, the real gross domestic product (GDP) growth for 2024-25 is estimated at 6.4 per cent. Consumer price index (CPI) inflation is expected to ease to 4.8 per cent in 2024-25, with the Q4 2024-25 projection at 4.4 per cent. Furthermore, the projected GDP growth rate for 2025-26 is pegged at 6.7 per cent, while the inflation projection remains unchanged at 4.2 per cent for 2025-26.