India Central Bank Cuts Key Rate, Boosts Liquidity to Support 'Goldilocks' Economy
Edited By WION Video Desk
Published: Dec 06, 2025, 24:19 IST | Updated: Dec 06, 2025, 24:19 IST
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The Reserve Bank of India (RBI) has cut its key repo rate by 25 basis points, bringing total cuts in 2025 to 125 bps, and signaled the possibility of further easing. To support India’s “goldilocks” economy, the RBI will also boost banking-sector liquidity by up to $16 billion. With inflation below target, these measures aim to stabilize growth amid widening trade deficits and currency pressures.
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