Reserve Bank of India (RBI) governor Sanjay Malhotra has announced the Monetary Policy Committee has cut the benchmark repo rate by 26 basis points.

The Reserve Bank of India cut the repo rate by 25 basis points to 6.25%, marking its first reduction in nearly five years. The central bank aims to balance inflation control with economic growth, maintaining a neutral stance amid mixed expert reactions.

While new borrowers can expect banks to revise their rates soon, existing borrowers will typically see the benefit at their next reset date, which could be in six or twelve months, depending on their loan agreement.