RBI had last reduced the repo rate by 40 basis points to 4 per cent in May 2020 to help the economy tide over the crisis following the outbreak of the Covid pandemic and subsequent lockdown.

This is the first meeting of the panel under the leadership of RBI Governor Sanjay Malhotra, who assumed office in December 2024 following the end of Shaktikanta Das' tenure.

Highlights: The Reserve Bank of India has cut repo rate by 25 bps to 6.25% for the first time in nearly five years. RBI's rate-setting panel has pegged India’s FY26 GDP growth at about 6.7. RBI expects economic growth in Q1,