Mumbai, Feb. 7 -- The Reserve Bank of India's (RBI) six-member Monetary Policy Committee (MPC) on Friday cut the repo rate by 25 basis points to 6.25 per cent.

RBI Governor Sanjay Malhotra said the MPC has also unanimously decided to continue with a neutral stance and will focus on inflation while supporting growth. This would provide flexibility to respond to the macroeconomic environment, he added.

He said that inflation has declined and is expected to further moderate and gradually align with the RBI's target.

Malhotra said the RBI was committed to providing sufficient liquidity in the economy and would take steps to ensure durable liquidity to meet the requirement of the system.

He also said that the RBI was keeping a close watch ...