Archive · 8 Dec 2025
RBI Cuts Rates to Boost Growth
The Reserve Bank of India (RBI) has lowered its repo rate by 25 basis points to 5.25%.
This decision was made to help the economy grow faster and make loans cheaper for people.
The RBI believes that India's economy is strong enough to handle this change, even though there are some problems like a weakening rupee and global trade issues.
The government is also taking steps to boost spending and income, which will help the economy grow.
The RBI expects the economy to grow by 7.3% in the next financial year and inflation to drop to 2%.
The RBI will also take steps to ensure that there is enough money in the banking system.
The Finance Minister said that the government's policies are helping to increase spending and income, which is good for the economy.
The RBI cut the repo rate by 25 basis points to 5.25% to support economic growth.
The government is taking steps to boost consumption and income, which will help the economy grow.
The RBI expects the economy to grow by 7.3% in the next financial year and inflation to drop to 2%.
The RBI will take steps to ensure that there is enough money in the banking system.
The Finance Minister said that the government's policies are helping to increase spending and income, which is good for the economy.
- Who
- Reserve Bank of India (RBI) and Finance Minister Nirmala Sitharaman
- What
- RBI cut the repo rate by 25 basis points to 5.25%, and the government announced measures to boost consumption
- When
- Effective from December 6, 2025
- Where
- India
- Why
- To support economic growth and make borrowing cheaper for customers
- RBI Repo Rate
- 5.25%
- RBI Repo Rate Cut
- 25 basis points
- India's Q2 GDP Growth
- 8.2%
- India's Inflation Rate
- 1.7%
- RBI's GDP Growth Forecast
- 7.3%
- India's Foreign Exchange Reserves
- US$686.2 billion
- Current Account Deficit
- Modest through FY26
- Expected CPI Inflation
- 2% in FY26
Sources
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