♦ The Reserve Bank of India (RBI) has slashed its repo rate by 25 basis points from 5.5% to 5.25%, the central bank's governor, Sanjay Malhotra, announced this on 5 December 2025. The latest rate cut takes the total reduction in 2025 to 125 basis points. The decision was taken unanimously after a meeting of the RBI's Monetary Policy Committee (MPC).

♦ The MPC had earlier reduced the key lending rate in June from 6% to 5.5% in view of a softening inflation.

♦ The RBI has also sharply raised the Gross Domestic Product (GDP) forecast for the current financial year to 7.3% from its earlier estimate of 6.8%. The GDP forecast for the current quarter (Q3, October-December) is also higher at 6.7% than the earlier 6.4%.