The decision by RBI on Friday to reduce its key rate for the first time in five years comes less than a week after the government unveiled historic tax cuts in Budget 2025

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.

Learn why the RBI’s Monetary Policy Committee is likely to cut the repo rate for the first time in five years, its economic impact, and market implications.