The Reserve Bank of India cut its key repo rate by 25 basis points to 6.25%, the first cut in nearly five years. This decision from the Monetary Policy Committee aims to stimulate economic growth and offers relief to borrowers with lower EMIs.

The repo rate, set by the RBI, influences borrowing costs for banks. A higher repo rate raises FD interest rates, attracting deposits, while a lower rate reduces FD returns by making borrowing cheaper.

The MPC had changed its policy stance to neutral in October and cut banks' cash reserve ratio by 50 bps in December to ease liquidity stress in the banking system

The RBI's Monetary Policy Committee, led by new Governor Sanjay Malhotra, cut the repo rate by 25 basis points to 6.25%, maintaining a neutral stance. This change follows eleven meetings with an unchanged rate.

The Reserve Bank of India (RBI) Governor Sanjay Malhotra announced to lower the repo rate by 25 basis points to 6.25% on Friday, February 7, 2025. The central bank commenced its three-day meeting on Wednesday, February 5. In the previous MPC meeting in December 2024, the RBI had maintained the status quo keeping the key interest rate at 6.5%.

According to stock market experts, RBI's Monetary Policy Committee is expected to announce a 25 bps rate cut amid economic slowdown and inflation concerns

India’s new central bank governor is expected to deliver an interest rate cut in his first policy meeting, shifting the focus to boosting economic growth as global risks escalate. Governor Sanjay Malhotra,