RBI cuts repo rate to 5.25% and announces ₹1 lakh crore bond purchases
Change
The Reserve Bank of India's Monetary Policy Committee unanimously cut the policy repo rate by 25 basis points to 5.25%, raised its FY26 GDP growth forecast to 7.3%, announced open market purchases of government bonds worth ₹1 lakh crore, and arranged a USD 5 billion buy-sell swap.
Why it matters
The MPC reduced the policy repo rate by 25 basis points to 5.25% after a three-day review while retaining a neutral stance. The central bank revised its FY26 GDP growth forecast to 7.3% from 6.8%. Open market purchases of government bonds worth ₹1 lakh crore were announced to bolster banking-system liquidity. A USD 5 billion buy-sell swap was arranged to provide FX liquidity and address domestic liquidity tightness.
Implications
- • Lowers commercial banks' policy funding costs, affecting deposit and lending rate setting.
- • Injects liquidity into the banking system through ₹1 lakh crore of government bond purchases and a USD 5 billion FX swap.
Unlock the decision layer.
Go beyond headlines — see impact, exposure, and timing.
- Implications: What actually changes downstream.
- Who is affected: Which teams or operators are exposed.
- What to watch: Deadlines, triggers, and next moves.
- Real-time alerts: Know the moment a change is published.
- Ask AI: Clarify any brief instantly, in context.
14-day free trial. Full access. No credit card required.
Start free trial
Source
Topics