MPC meet: Low inflation, high growth – why did RBI still cut repo rate? Sanjay Malhotra explains

The Reserve Bank of India has reduced the repo rate by 25 basis points to 5.25%, citing benign inflation and a resilient economy. Despite a strong GDP growth forecast of 7.3% for the fiscal year, the central bank sees potential softening ahead. This move aims to support growth momentum while maintaining macroeconomic stability.