Reserve Bank of India (RBI) governor Sanjay Malhotra has announced the Monetary Policy Committee has cut the benchmark repo rate by 26 basis points.

The RBI is expected to encounter a trilemma encompassing tighter liquidity conditions, depreciating rupee and heightened geopolitical uncertainty. Economists expect RBI to begin monetary easing cycle and announce its first repo rate cut in five years.

This is the first meeting of the panel under the leadership of RBI Governor Sanjay Malhotra, who assumed office in December 2024 following the end of Shaktikanta Das' tenure.