MUMBAI, Dec 5 (Reuters) – The Reserve Bank of India (RBI) cut its key repo rate by 25 basis points on Friday, in line with a consensus view, as record low retail inflation and a benign outlook for prices provided ample room to further support economic growth.

The Monetary Policy Committee (MPC), comprising three RBI officials and three external members, unanimously voted to reduce the repo rate to 5.25%, while maintaining a “neutral” policy stance.

Governor Sanjay Malhotra raised India’s real GDP growth forecast for financial year 2026 to 7.3% from 6.8%, while lowering the nation’s inflation outlook to 2% from 2.6% in the previous policy for the financial year.

Here is a timeline of changes to India’s repo rate since June 2000.

*RATE (%) EFFECTIVE DATE

5.25 05-12-2025

5.50 01-10-2025

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