Bhubaneswar, Dec. 5 -- The Reserve Bank of India (RBI) reduced the policy repo rate by 25 basis points on Friday, bringing it down to 5.25 per cent, in a move aimed at supporting liquidity and sustaining economic momentum. The announcement was made by RBI Governor Sanjay Malhotra after the Monetary Policy Committee (MPC) concluded its three-day meeting held from December 3 to 5. The decision, taken unanimously, comes into effect immediately.

Governor Malhotra said the MPC's verdict followed a comprehensive assessment of evolving macroeconomic indicators and future economic prospects. India's macroeconomic environment remains robust, backed by 8.2 per cent GDP growth in the second quarter of the current financial year.

At the same time, ...