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 also lowered its growth forecast for fiscal year 2026 to 6.7% while maintaining the policy stance at "neutral".

RBI governor Sanjay Malhotra said that although India's economic growth is expected to recover, it will likely be much lower than last year. Inflation dynamics have opened space for rate easing, he added in his first policy review following his appointment in December.

"The MPC noted that inflation has declined. Supported by a favourable outlook on food and continuing ...