The Reserve Bank of India (RBI) today reduced its key interest rate for the first time in nearly five years in a bid to boost the economy. The Monetary Policy Committee (MPC) of the central bank unanimously decided to cut the policy repo rate by 25 basis points to 6.25 percent.
Announcing the decision after a three-day MPC meeting, newly appointed RBI Governor Sanjay Malhotra stated that the central bank’s mandate is to ensure both financial stability and consumer protection, which are essential for the economy.
This is the first rate cut since May 2020.