- The new repo rate now stands at 5.25%, down from 5.50%.
- This decision was taken in response to easing inflationary pressures.
- The cut makes borrowing cheaper for banks, encouraging lending and investment.
- It is expected to boost credit flow, consumption, and overall economic growth.
- The move reflects RBI’s accommodative monetary stance balancing growth with price stability.
- At 5.25%, the repo rate is among the lowest levels in recent years, signaling confidence in India’s economy.
Question:
Q1. On 5 December 2025, the RBI reduced the repo rate to:a) 5.50%
b) 5.35%
c) 5.25%
d) 5.00%
Answer: c) The content states that after a 25 basis points cut, the new repo rate stands at 5.25%.
