The six-member monetary policy committee (MPC) of the Reserve Bank of India (RBI), led by governor Sanjay Malhotra, on Friday reduced the policy repo rate by 25 basis points to 6.25 per cent from 6.5 per cent.

The former revenue secretary in the Ministry of Finance, Malhotra is expected to announce the cuts to lower interest rates for economy’s growth which is expected to reach a four year low.

To cut the repo rate by 25 basis points to 6.25% unanimously. The standing deposit facility rate, pegged 25 basis points below the repo rate, is at 6.0%. The marginal standing facility rate, which is 25 basis points above the repo rate, is 6.5%.

The last revision of rates happened in February 2023 when the policy rate was hiked by 25 basis points to 6.5%.

Rate-sensitive sectors reacted mixed after RBI’s 25 basis points repo rate cut to 6.25%. The BSE Sensex fell 328 points, while Nifty Auto and Realty gained. Housing sector benefits from reduced rates,

In the last MPC meet held in December, the RBI, led by former governor Shaktikanta Das, had decided to keep the repo rates unchanged at 6.5%.

The Reserve Bank of India's Monetary Policy Committee is anticipated to announce a 25 basis point repo rate cut after their m

India’s new central bank governor cut interest rates for the first time in almost five years on Friday to help spur a slowing economy as global risks intensify.

The RBI's Monetary Policy Committee cut the repo rate by 25 bps for the first time in nearly five years, maintaining a neutral stance. Governor Sanjay Malhotra noted inflation aligns with targets amid concerns over economic growth and signs of inflation nearing 4 per cent.

The newly-appointed RBI Governor Sanjay Malhotra is anticipated to announce a 25 basis points repo rate cut to 6.25% on February 7. With the slowing economic growth and easing inflation, the Monetary Policy Committee may favor rate reduction to stimulate the economy,