Reserve Bank of India (RBI) Reduces Repo Rate to 5.25 Percent

Exam-focused facts from the 7 December 2025 current affairs briefing.

Key facts

The Reserve Bank of India (RBI) Monetary Policy Committee (MPC) delivered a 25-basis-point reduction in the repo rate, bringing it down to 5.25 percent.
The central bank cut policy rates by a cumulative 125 basis points during 2025.
Average headline inflation for Q2:2025-26 was 1.7 percent, breaching the lower tolerance threshold of 2 percent.
Inflation dipped to 0.3 percent in October 2025.
Real GDP growth accelerated to 8.2 percent in Q2.
Inflation was 2.2 percent and growth was 8.0 percent in H1:2025-26.
The MPC slashed the inflation aim by 60 basis points to 2 percent.
The central bank raised the FY26 growth forecast to 7.3 percent.