MPC approves 25 bps rate cut amid growth concerns
pre-market1 source ↓written by the desknot a recommendation
- in the policy
- 25-basis-point cut
- during its December
- 5.25%
- in Q2 FY26
- 8.2% GDP growth
The Monetary Policy Committee (MPC) unanimously approved a 25-basis-point cut in the policy repo rate to 5.25% during its December meeting, citing emerging signs of economic slowdown. Despite a robust 8.2% GDP growth in Q2 FY26, members expressed concerns over declining momentum and rising global uncertainties.
This decision reflects a cautious approach to maintain growth amid a benign inflation outlook, potentially influencing market sentiment and borrowing costs.
Not investment advice. For informational purposes only.