RBI's Monetary Policy Review: 0.25% Repo Rate Cut
On February 7, the Reserve Bank of India (RBI) made an important decision. The RBI has reduced the repo rate by 0.25%. Under the leadership of RBI Governor Sanjay Malhotra, in the first policy review, the RBI cut the repo rate by 25 basis points, bringing it to 6.25%. All members of the Monetary Policy Committee (MPC) were in favor of the repo rate cut.
During his first monetary policy announcement on Friday, RBI Governor Sanjay Malhotra said that the MPC unanimously decided to reduce the policy rate by 25 basis points from 6.5% to 6.25%.
It is noteworthy that this 25 basis points cut follows the previous rate cut in May 2020. The last adjustment to the rates was made in February 2023 when the policy rate was increased by 25 basis points to 6.5%.
