The Reserve Bank of India’s decision to cut the repo rate by 25 basis points to 6.25 per cent marks shift in monetary policy. This is the first reduction in nearly five years. The move is aimed at stimulating economic activity by making borrowing cheaper. The Monetary Policy Committee (MPC) unanimously agreed to this measure on February 7, 2025. This decision reflects the RBI’s response to current economic conditions and its commitment to encouraging growth while managing inflation.
