RBI cuts rate by 0.25% for growth.

• The Monetary Policy Committee of the Reserve Bank of India (RBI) has cut the repo rate by 25 basis points to 6.25%.

• The move aims to support fading growth and hopes for inflation easing to 4.4% in Q1 and 4.2% through 2025-26.

• The policy shift may lead to cheaper loans for homes, cars, and other purposes.

• This is the first repo rate cut since the early days of the COVID-19 pandemic.

• RBI Governor Sanjay Malhotra emphasized the MPC’s neutral monetary policy and focus on a durable alignment of inflation with the target while supporting growth.