RBI's Double Dose: 25bps Rate Cut to 5.25% and ₹1 Lakh Crore OMO Infusion to Boost Economy
On December 5th, 2025, in a significant move to boost the economy, the Reserve Bank of India (RBI) unanimously decided to maintain a neutral stance and announced cut in the repo rate by 25 basis points to 5.25%, while also announcing measures to ensure sufficient liquidity and strengthen the rupee. The central bank is set to purchase ₹1 lakh crore worth of government securities through Open Market Operations (OMO) and launch a three-year $5 billion USD/INR swap.
Other Key highlights include:
The Repo rate cut is expected to support growth next fiscal, as monetary policy typically has a lagged effect. These combined policy actions signal the RBI's strong efforts to support growth, reduce borrowing costs, and stabilize liquidity into the system, ultimately aiming to strengthen the Indian economy and the Rupee.
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