The Reserve Bank of India has cut its key interest rate for the first time in nearly five years, as cooling inflation has offered room to stimulate the slowing economy. The Monetary Policy Committee decided to trim the repo rate by 25 basis points to 6.

The bank last cut them in May 2020. The RBI's decision comes less than a week after the government unveiled sweeping income tax cuts in its annual budget, looking to put more money in the hands of consumers reeling from high food prices and weak wage growth.

Projects FY26 inflation at 4.2%, GDP growth at 6.7%

According to stock market experts, RBI’s Monetary Policy Committee is expected to announce a 25 bps rate cut amid economic slowdown and inflation concerns

The Reserve Bank of India’s monetary policy committee (MPC) today unanimously slashed the repo rate by 25 basis points to 6.25% after keeping the key policy rate unchanged for six consecutive times. The MPC also decided unanimously to continue with the 'neutral' policy stance.

The Reserve Bank of India is expected to trim the interest rate by 25 basis points to 6.25% at the policy meeting concluding Friday, in what would be its first rate cut in nearly five years. Indian government bonds have rallied in recent weeks,

The Reserve Bank of India is widely expected to cut interest rates for the first time in nearly five years. This is according to a Reuters survey of economists and analysts. Inflation in India has declined;