New Delhi, Feb. 7 -- The Reserve Bank of India's monetary policy committee on Friday unanimously cut the repo rate by 25 basis points to 6.25%-the first in nearly five years-chiefly to take advantage of easing inflation to spur economic growth.

The central bank lowered its growth forecast for fiscal year 2026 to 6.7%, pointing to headwinds from geopolitical tensions, protectionist trade policies, volatility in international commodity prices, and financial market uncertainties as potential risks to India's growth outlook.

The regulator maintained its policy stance at "neutral", signalling the possibility of more rate cuts.

RBI governor Sanjay Malhotra said that although India's economic growth is expected to recover, it will likely be m...