New Delhi/Mumbai, December 5 (Udaipur Kiran) – The Reserve Bank of India (RBI) has reduced the key policy rate repo rate by 0.25 percent, bringing it down to 5.25 percent. RBI Governor Sanjay Malhotra announced the decisions of the Monetary Policy Committee (MPC) on Friday after the committee’s review meeting. Along with this, the economic growth forecast has been raised from 6.8 percent to 7.3 percent, while the inflation rate estimate has been reduced from 2.6 percent to 2 percent.
RBI Governor Sanjay Malhotra, while briefing about the decisions taken in the three-day 5th bi-monthly MPC meeting that began on December 3, said that the MPC unanimously decided to reduce the key policy rate repo rate by 0.25 percent to 5.25 percent.
In his address, Governor Sanjay Malhotra said this decision was necessary to boost growth. He stated that the Reserve Bank made this policy rate cut amid strong economic growth and softening inflation. Malhotra said that the RBI has also raised the economic growth rate forecast for the current financial year 2025-26 from 6.8 percent to 7.3 percent. Additionally, the inflation rate estimate has been reduced from 2.6 percent to 2 percent.
It is noteworthy that the RBI had cut the repo rate by a total of 1 percent from February to June, but had not made any changes in the last two meetings (August and September-October). After this cut, the repo rate has come down from 5.50 percent to 5.25 percent. This decision by the central bank is likely to reduce EMIs on home loans and other loans, which will ease the financial burden on people.
(Udaipur Kiran) / Prajesh Shankar
Deependra Singh Chundawat is a Senior Sub-Editor at Udaipur Kiran, specializing in a wide range of technology topics including mobile phones, applications, gaming, PCs, and wearables. Along with covering the latest tech news, he also creates engaging web stories. Passionate about emerging technologies, he stays up to date with the newest trends and enjoys reading and writing about the latest mobile launches and digital innovations.
