Reserve Bank of India (RBI) cuts repo rate by 25 basis points

Key facts

• The Reserve Bank of India (RBI) sliced the repo rate by 25 basis points to 5.25 per cent on December 5.
• The cumulative reduction in the repo rate this calendar year is 125-basis-point.
• The rupee breached the 90-mark against the US dollar, hitting a record low.
• Domestic inflation remains historically benign, with CPI inflation at 0.25 per cent in October 2025.
• The policy announced Rs 1 trillion in Open Market Operations (OMO) and a $5 billion FX swap.
• The 10-year bond yields are expected to move toward the 6.8 to 7 per cent range.
• Experts believe there is scope for another 25 bps cut in this cycle.