RBI Cuts Repo Rate By 25 Bps | What’s Next For The Economy?

The Reserve Bank of India (RBI), led by Governor Sanjay Malhotra, has reduced the policy repo rate by 25 basis points to 6.25%, marking the first rate cut in nearly five years. The decision, taken unanimously by the Monetary Policy Committee (MPC), comes amid slowing growth and easing inflation. While the stance remains neutral, signaling flexibility for future moves, experts believe this could be the beginning of a rate cut cycle. According to CRISIL Chief Economist DK Joshi, the RBI may lower rates further by 75 to 100 basis points, depending on both domestic and global economic conditions. However, with global uncertainties and inflation risks still in play, the timing and extent of future cuts remain uncertain.