RBI MPC cuts policy repo rate by 25 bps to 6.25%

RBI MPC meeting 2025 LIVE updates: Reserve Bank of India (RBI) governor Sanjay Malhotra has announced the Monetary Policy Committee has cut the benchmark repo rate by 26 basis points.

The MPC began its three-day meeting to discuss and set the new interest rates on Wednesday, February 5, 2025, and this was the first one since Malhotra took over the reins in December 2024, following the end of Shaktikanta Das’s tenure.

This time, a 25 basis point repo rate cut has been widely expected to take place to inject more liquidity into the market, taking the benchmark lending rate from the current 6.5% to 6.25%.

During the previous MPC meeting in December 2024, the RBI may have made a ₹1.16 trillion liquidity boost, after it announced a 50 basis point cut in the cash reserve ratio (CRR), making it 4%.