28.1 C
Delhi
Friday, September 19, 2025

RBI cuts repo rate by 0.25 pc, first time in nearly five yrs

Date:

Share post:

Donate-GC-Razorpay

New Delhi: Amid easing inflation pressure, the Reserve Bank of India (RBI)’s Monetary Policy Committee (MPC) on Friday decided to cut policy repo rate by 0.25% to 6.25% raising hopes of relief in loan EMIs.

The RBI has cut the key interest rate in nearly five years.

“After detailed assessment of the evolving macroeconomic and financial developments and the economic outlook, the Monetary Policy Committee (MPC) decided unanimously to reduce policy repo rate by 25 basis points from 6.5% to 6.25%,” said RBI Governor Sanjay Malhotra in his maiden monetary policy statement.

The MPC also decided unanimously to continue with the neutral stance and remain unambiguously focussed on a durable alignment of inflation with the target while supporting growth.

On the rationale for the decision, the RBI Governor said that the MPC noted that the inflation has declined supported by favourable outlook on food and continuing transmission of past monetary policy actions.

“It is expected to further moderate in 2025-26 gradually aligning with the target. The MPC also noted that though growth is expected to recover from the low of Q2FY25 it is much below that of last year. Last year it was 8.2%,” Malhotra said.

Retail headline inflation, as measured by Consumer Price Index (CPI), has softened from 5.4% in FY24 to 4.9% in April–December 2024. While the average inflation in FY25 has trended downward, monthly volatility in food prices and a select few commodities have been responsible for CPI inflation printing towards the upper side of the RBI’s tolerance band of 4 (+/-) 2 per cent.

Related articles

The Fractured Geopolitics of the Middle East: How Internal Divisions and External Interventions Are Degrading the Region

Introduction: A Region at War with ItselfThe Middle East and West Asia present a paradox of immense...

America’s $35 Trillion Debt: Crypto Cloud Scam to Reset the Dollar

In the corridors of geopolitical strategy, there are whispers louder than any official announcement, whispers that reveal not...

The American Military in Bangladesh: Quiet Landings, Loud Questions

The quiet arrival of American boots on Bangladeshi soil has raised eyebrows not just in Dhaka but in...

Qatar’s Blood Money: How Doha Bankrolled Hamas and Fueled the October 7 Massacre

 Since 2012, Qatar has positioned itself as Gaza’s saviour while quietly acting as its executioner. The numbers are...