RBI slashes repo rate by 25 basis points

The Reserve Bank of India (RBI) has reduced the repo rate by 25 basis points to 5.25 per cent. This has been the fourth rate cut post-February 2025. The Monetary Policy Committee (MPC) has remained with a ‘neutral’ stance. Further, RBI revised GDP estimates to 7.3 per cent for 2025-26, up from 6.8 per cent earlier. The CPI inflation forecast for 2025-26 has been reduced to 2 per cent, down from 2.6 per cent earlier. Overall, in calendar year 2025, RBI has lowered the repo rate by 125 basis points.