The RBI Governor Sanjay Malhotra delivered the first interest rate cut in nearly five years. The RBI MPC reduced the repo rate cut to 6.25% from 6.50%.

Highlights: The Reserve Bank of India has cut repo rate by 25 bps to 6.25% for the first time in nearly five years. RBI's rate-setting panel has pegged India’s FY26 GDP growth at about 6.7. RBI expects economic growth in Q1,

RBI had last reduced the repo rate by 40 basis points to 4 per cent in May 2020 to help the economy tide over the crisis following the outbreak of the Covid pandemic and subsequent lockdown.