RBI cuts repo rate to 5.25%—what it means for you
The Reserve Bank of India just lowered its key interest rate by 0.25%, bringing the repo rate down to 5.25%.
Announced by Governor Sanjay Malhotra, this move comes even as India's economy is growing fast (8% in early FY26) and inflation is super low at 2.2%.
The RBI aims to help keep things balanced while global trade stays bumpy.
Why is RBI doing this?
This year alone, the RBI has dropped rates by a total of 1.25% to likely make borrowing cheaper and keep inflation under control—right now, it's actually below their target range of 2-6%.
Surveys show people are less worried about rising prices lately.
Even though growth might slow a bit in coming months due to less government spending and global pressures, the RBI is expected to maintain its approach to keep the economy stable for everyone.