The Reserve Bank of India (RBI) has reduced the repo rate by 25 basis points, bringing it down to 5.25%. Alongside this, the Standing Deposit Facility (SDF) rate has been set at 5%, according to RBI Governor Shaktikanta Das.
Announcing the policy, the Governor said India is currently experiencing an uncommon period of balanced economic growth.
“Bolstered by strong spending during the festive season, which was further facilitated by the rationalisation of the GSD rate. Inflation at a benign 2.2% and growth at 8% for the first half of this year presents a rare Goldilocks period,” the Governor noted.
The policy stance reflects confidence in India’s macroeconomic resilience amid easing inflation, steady domestic demand, and strong GDP momentum.