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Reserve Bank of India Cuts Repo Rate To 5.25% — Revises FY26 GDP Growth Outlook Up To 7.3%

Reserve Bank of India Cuts Repo Rate To 5.25% — Revises FY26 GDP Growth Outlook Up To 7.3%
The Reserve Bank of India (RBI) on Thursday reduced the repo rate by 25 basis points to 5.25%, aiming to support economic growth amid moderating inflation. The Monetary Policy Committee (MPC), chaired by Governor Sanjay Malhotra, retained a neutral stance, signaling a balance between promoting growth and controlling prices. The central bank also raised India’s GDP growth forecast for FY2025‑26 to 7.3% from the earlier 6.8%, reflecting confidence in sustained economic momentum. The rate cut is expected to make loans and EMIs cheaper, providing relief to borrowers. RBI emphasized that while inflation remains under watch, the policy move reflects the government’s commitment to supporting growth without compromising price stability.
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