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%.

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.

Governor Sanjay Malhotra on Friday announced that the central bank has slashed the policy repo rate by 25 basis points from 6.5 per cent to 6.25 per cent. The decision was taken on a unanimous basis.