24 Dec 2025 - Repo Rate Cut by 0.25% Reserve bank of india

The Reserve Bank of India (RBI) has cut the repo rate by 25 basis points to 5.25% on December 5, 2025, marking the second consecutive reduction to boost economic growth amid easing inflation and global uncertainties and kept reverse repo rate unchanged at 3.35%. 

In this article, let’s check the recent inflation rate, GDP projection, impact, and the history of the repo rate.

Key Highlights
As per the RBI MPC (Dec 2025) meeting, the repo rate was reduced to 5.25% by 25 bps.
RBI retained its GDP growth forecast at 7.3% for the current year.
Inflation projection for FY26 lowered to 2%.
Reverse repo rate remains at 3.35%.