The RBI's Monetary Policy Committee cut the repo rate by 25 bps for the first time in nearly five years, maintaining a neutral stance. Governor Sanjay Malhotra noted inflation aligns with targets amid concerns over economic growth and signs of inflation nearing 4 per cent.

The Reserve Bank of India reduced the repo rate by 25 basis points, lowering it to 6.25%, under the leadership of new Governor Sanjay Malhotra. The decision was influenced by a resilient Indian economy amidst global uncertainties and marked the first reduction since May 2020.

In the last MPC meet held in December, the RBI, led by former governor Shaktikanta Das, had decided to keep the repo rates unchanged at 6.5%.