The RBI's Monetary Policy Committee, led by new Governor Sanjay Malhotra, cut the repo rate by 25 basis points to 6.25%, maintaining a neutral stance. This change follows eleven meetings with an unchanged rate.

The latest decision brings the repo rate from 6.50 per cent to 6.25 per cent. Sanjay Malhotra, the newly appointed RBI Governor, chaired his first Monetary Policy Committee (MPC)

The RBI may have taken comfort from the tax cuts proposed in the Budget, which will offer some relief to the common man without hurting the fiscal math, as the deficit for FY26 has been pegged at 4.4 percent.