- The Repo Rate (Repurchase Rate) was cut by 25 basis points (bps) to 5.25%.
- Other rates: Reverse Repo Rate – 3.35%, Standing Deposit Facility (SDF) – 5.00%, and Marginal Standing Facility (MSF) – 5.50%.
- RBI maintained a neutral stance to balance growth and inflation.
- The Gross Domestic Product (GDP) growth forecast was raised to 7.3% for FY26.
- The Consumer Price Index (CPI) inflation projection was trimmed to 2.0%, citing easing food and fuel prices.
- Current Account Deficit (CAD) pegged at 1.3% of GDP in Q2 FY26, with Foreign Exchange (Forex) Reserves at USD 686.2 billion.
- RBI announced USD 1 trillion Open Market Operations (OMO), a 3‑year USD 5 billion swap, and a consumer complaint clearance campaign starting 1 January 2026.
Question:
Q.1 What is the revised Reverse Repo Rate as per the RBI’s December 2025 policy?a) 3.00%
b) 3.25%
c) 3.35%
d) 3.50%
Answer: c) The Reverse Repo Rate (rate at which RBI borrows from banks) was set at 3.35%.
