Malhotra unveils 25 bps rate cut, Rs 1.5 lakh crore liquidity boost, calls economy a ‘rare Goldilocks period’

The Reserve Bank of India cut its policy repo rate by 25 basis points to 5.25%, while raising the FY26 GDP forecast to 7.3% and lowering inflation to 2%. Governor Sanjay Malhotra announced liquidity measures, citing a “rare Goldilocks period” of benign inflation and strong growth.