The Reserve Bank of India (RBI)’s Monetary Policy Committee (MPC) announced a 25 basis point reduction in the key policy repo rate, bringing it down to 5.25 per cent. This move, aimed at supporting growth, was accompanied by the central bank raising its GDP growth forecast for the fiscal year 2025-26 to 7.3%, up from the earlier estimate of 6.8%. RBI Governor Sanjay Das cited benign inflation and easing food prices as factors enabling the accommodative monetary policy stance.
