RBI MPC Meeting Highlights: Repo rate cut by 25 basis points to 5.25%, EMIs to come down; RBI governor Sanjay Malhotra dismisses concerns on rupee, says comfortable on external sector

RBI MPC Meeting Highlights: The Reserve Bank of India (RBI) governor Sanjay Malhotra-led Monetary Policy Committee (MPC) announced its decision on repo rate and other key rates and CRR today. RBI cut the repo rate by 25 basis points to 5.25%. Experts and economists had expected the RBI to opt for a 25 basis points repo rate cut. The repo rate now stands at 5.25% after 125 basis points rate cut in this year. A repo rate cut means lower EMIs for loan borrowers. The conditions for a rate cut are benign since the Consumer Price Index (CPI) inflation has dropped to a record low of 0.25% in October. This is way below the RBI’s target.The MPC has been tasked with maintaining retail inflation close to 4% with a 2% margin on either side, making the target inflation range 2-6%. At the same time the economy is on a strong growth path, with the second quarter real GDP growth at 8.2%, much above RBI’s estimates. Track TOI’s live coverage from the RBI MPC meet, RBI governor Sanjay Malhotra’s policy statement & more: