Mumbai, Feb. 7 -- The Reserve Bank of India (RBI) on Friday reduced the repo rate by 25 basis points from 6.5% to 6.25% in another step to boost the economy, media reports said.

This is the first time in five years the RBI has reduced the repo rate.

The last time when the rate was reduced was in May 2020.

RBI Governor Sanjay Malhotra said India is not immune to the challenging global economy, which is growing at a slower rate.

Industry reactions

V. P. Nandakumar, MD & CEO, Manappuram Finance

The RBI's 25 basis point cut in the repo rate to 6.25%, after five years marks a pivotal move to boost liquidity in the financial system.

With the Standing Deposit Facility now at 6% from 6.25% and the Marginal Standing Facility and Bank rates ...