New Delhi, December 07, 2025: The Reserve Bank of India’s decision to cut the repo rate by 25 basis points to 6.25% is a welcome and expected move that aligns with market predictions, providing much-needed support for economic growth. As the government pursues fiscal consolidation, aiming for a fiscal deficit of 4.8% of GDP for the current year and targeting a further reduction to 4.4% in 2025-26, this rate cut reflects a proactive approach to fostering a conducive environment for investment and boosting consumer confidence.
Despite ongoing concerns over inflation, particularly with a weakening rupee, this adjustment underscores the RBI’s commitment to balancing growth with fiscal stability. With the economic growth estimate for FY26 now at 6.7%, this strategic decision is likely to enhance the overall economic outlook and promote a sustained recovery in the year ahead.
Corporate Comm India (CCI Newswire)
