RBI cuts repo rate to 5.25% amid growth slowdown fears
The Reserve Bank of India (RBI) just cut its key interest rate—called the repo rate—to 5.25%.
This is the fourth time they've lowered it this year, even though India's economy grew a solid 8.2% last quarter and inflation hit a record low in October.
The move comes after the December 2025 RBI policy meeting.
Why did RBI go for another rate cut?
Despite some headline numbers looking good, other signs are worrying: industrial production hit a 14-month low, manufacturing barely grew, exports dropped by 12%, and the manufacturing PMI slipped too.
RBI Governor Sanjay Malhotra said there's still some resilience but admitted things are slowing down as the year wraps up.
What does this mean for you?
The RBI hopes this cut will keep demand going without sending prices out of control—even as the rupee slides to new lows against the dollar.
Deputy Governor Poonam Gupta shared that cooling inflation helped them decide to act now.
These moves are all about keeping growth steady when things get uncertain.