The Reserve Bank of India announced a 25 basis point cut in the repo rate, now at 6.25%, the first reduction in five years. The decision follows declining inflation rates and the need to support economic growth.

Most economists surveyed by Bloomberg predict that the Reserve Bank of India will reduce the benchmark repurchase rate by at least 25 basis points to 6.25 per cent on Friday

With the RBI MPC meeting entering its second day today (January 6), economists said that the MPC is expected to announce a 25 bps cut this month.