RBI monetary policy, Feb. 7 -- The Reserve Bank of India (RBI) announced a 25-basis-point reduction in the repo rate, bringing it down to 6.25 per cent from 6.5 per cent. This marked the first rate cut in nearly five years, with the last reduction occurring in May 2020 when the repo rate was slashed to 4 per cent. The central bank also maintained a 'neutral' stance on monetary policy.

This decision was made during the first Monetary Policy Committee (MPC) meeting under the leadership of RBI Governor Sanjay Malhotra, who assumed office in mid-December. Malhotra stated that the committee had unanimously agreed to lower the repo rate and maintain its neutral stance, emphasising a commitment to aligning inflation with targets while supportin...