The Reserve Bank of India on Friday reduced the repo rate by 25 basis points to 5.25%, ending its two-meeting pause and extending the monetary easing cycle that began in February. With this move, the central bank has delivered 125 bps of cumulative cuts in 2025, a shift Governor Sanjay Malhotra said was made possible by a rare and sharp moderation in inflation and a stronger-than-expected economic expansion. The decision was unanimously approved by the six-member Monetary Policy Committee (MPC), which met from December 3–5 against the backdrop of falling consumer prices, better global financial conditions, and renewed pressure on the rupee.