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 six-member monetary policy committee (MPC) revised the repo rate for the first time in 2 years, voting unanimously to cut it by 25 basis points from 6.50% to 6.25% in view of easing retail inflation and slowing growth.