RBI Cuts Repo Rate, CAD to Stay Sustainable

 In a significant move, the Reserve Bank of India (RBI) cut the repo rate by 25 basis points to 6.25%, marking the first reduction in nearly five years. Governor Sanjay Malhotra emphasized that the current account deficit (CAD) will remain well within sustainable levels, supported by robust service exports and remittance inflows. The RBI projects FY26 GDP growth at 6.7% and inflation at 4.8%. This decision aligns with fiscal measures from the Union Budget to stimulate growth and ease borrowing costs, offering relief to consumers and businesses alike.

Source: Economic Times, Business Standard, News18