The Reserve Bank of India (RBI) lowered its key repo rate by 25 bps to 5.25% during its December 2025 meeting and maintained a neutral stance, in line with market expectations. The decision comes amid easing inflation and robust GDP growth, despite a weakening rupee. The central bank has now cut rates by a total of 125 bps since the beginning of the year, bringing the repo rate to its lowest level since July 2022.