RBI Governor Sanjay Malhotra announced a 25 basis points rate cut on February 26, the first in five years, to stimulate the slowing economy. The MPC maintained a neutral stance, projecting FY26 inflation at 4.

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 his first Monetary Policy announcement on Friday, Reserve Bank of India (RBI) Governor Sanjay Malhotra stated that the Monetary Policy Committee (MPC) had unanimously decided to reduce the policy rate by 25 basis points (bps) from 6.

The Reserve Bank of India has cut its key interest rate for the first time in nearly five years, as cooling inflation has offered room to stimulate the slowing economy. The Monetary Policy Committee decided to trim the repo rate by 25 basis points to 6.