RBI Cuts Rate to 5.25%; India's Rate Lower Than BRICS, Aligns with US

• RBI cut the repo rate by 25 basis points to 5.25% in its latest MPC meeting (Dec 3-5).
• The rate cut aims to support economic momentum and ease lending.
• RBI Governor described the current economic situation as a 'rare goldilocks period' with 2.2% inflation and 8.0% growth in H1:2025-26.
• India's 5.25% policy rate aligns with developed economies like the US (4.00%) and UK (4.00%).
• India's rate is significantly lower than other BRICS nations, such as Brazil (15.00%) and Russia (16.50%), which face high inflation.

Why It Matters: India's rate cut influences borrowing costs, impacting your finances and economic growth.