RBI cuts interest rate to 5.25% to boost 'goldilocks' economy

• RBI cut the key benchmark interest rate (repo rate) by 25 basis points to 5.25%, the first reduction in six months.
• The unanimous decision by the monetary policy committee aims to support a "goldilocks" economy, despite concerns over rupee depreciation.
• This is the fourth rate cut since February 2025, with the RBI maintaining a neutral stance.
• RBI lowered its inflation forecast to 2% and raised GDP growth projection to 7.3% for the fiscal year.
• The central bank will conduct Rs 1 lakh crore in open market operations and USD 5 billion in forex swaps to boost liquidity.

Why It Matters: RBI's rate cut means cheaper loans and potential economic growth for you.