Overview
- The Monetary Policy Committee unanimously lowered the repo rate to 5.25% and retained a neutral stance, taking total cuts this year to 125 basis points.
- The RBI announced ₹1 trillion of open market bond purchases and a $5 billion forex swap to add liquidity and speed the pass-through of lower rates.
- Governor Sanjay Malhotra called conditions a “rare goldilocks” period, pointing to October CPI near 0.25% and resilient growth.
- Official projections were revised with FY26 GDP raised to about 7.3% and inflation trimmed to roughly 2%.
- The rupee slipped past 90 per dollar earlier this week, and the decision is expected to lower borrowing costs for home and auto loans even as external pressures linger.