RBI Delivers Historic Rate Cut as New Governor Charts Growth Path

The Reserve Bank of India's Monetary Policy Committee, under newly appointed Governor Sanjay Malhotra, cut the repo rate by 25 basis points to 6.25% in its February meeting, marking the first reduction in nearly five years. The unanimous decision reflects the central bank's shift toward supporting growth while maintaining price stability. The MPC projects GDP growth at 6.7% for FY26 and expects inflation to moderate to 4.2%. This pivotal policy shift comes as the economy shows signs of moderating inflation and the need for growth stimulus, with the decision expected to reduce borrowing costs across sectors.

Source: Reserve Bank of India