New Delhi, Dec. 5 -- The Reserve Bank of India (RBI) on Friday lowered the repo rate by 25 basis points to 5.25 per cent, a move widely anticipated by markets and interpreted by analysts as a supportive step amid easing inflation and global uncertainties.

Calling the move an "insurance rate cut," Dharmakirti Joshi, Chief Economist at CRISIL Limited, said the reduction was expected given the inflation trajectory.

"It was as expected because the growth was high, but the inflation was lower than their 2 to 6 per cent range. And I think they also expect inflation to be lower in the third quarter of this year, and also the future inflation projections have also been reduced," Joshi added.

He further added that the cut should support borrowe...