The RBI Governor Sanjay Malhotra delivered the first interest rate cut in nearly five years. The RBI MPC reduced the repo rate cut to 6.25% from 6.50%.

The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) is responsible for setting the nation’s key interest rates, particularly the repo rate, which influences borrowing costs across the economy.

The repo rate, till now, stood at 6.5 per cent. The move comes barely a week after the Centre cut personal income tax to boost consumption.