The latest decision brings the repo rate from 6.50 per cent to 6.25 per cent. Sanjay Malhotra, the newly appointed RBI Governor, chaired his first Monetary Policy Committee (MPC)

RBI surprised the market in 2012 with a bigger than expected rate cut. Later in 2015, it surprised with an inter meeting cut in repo rate. In 2019 also, it came out with a surprise 25 basis points cut in the policy rate.

The RBI highlighted that Policy needs to support growth while the RBI maintains a Neutral stance to remain adequately watchful on tackling inflation.