Overview
- The Monetary Policy Committee reduced the policy repo rate by 25 basis points to 5.25% and retained a neutral stance.
- To aid transmission and steady markets, the RBI announced open market purchases of ₹1 lakh crore and a three-year $5 billion forex swap.
- FY26 projections were revised to 7.3% real GDP growth and 2% CPI inflation, reflecting strong activity and rapid disinflation.
- Reports indicate a unanimous vote for the rate cut, with one member preferring a shift in stance even as the panel kept policy neutral.
- Borrowing costs are set to fall for home, auto and MSME loans, as the central bank acts despite a rupee slide that briefly breached 90 per dollar.