The Reserve Bank of India (RBI) maintained the repo rate at 6.5% during its December 6 policy review, amid ongoing inflationary pressures, while revising the GDP forecast for FY 2025 down to 6.6% from 7.2%. To enhance liquidity, the RBI announced a 50 basis point cut in the Cash Reserve Ratio (CRR), effective December 14 and 28, which is expected to inject approximately Rs 1.06 lakh crore into the economy, supporting growth and project funding. Market experts view this as a proactive measure that could signal the beginning of a declining interest rate cycle.
