RBI to pump liquidity with $5 billion forex swap as rupee stays under pressure

The Reserve Bank of India (RBI) cut the repo rate by 25 basis points to 5.25%, marking a total reduction of 125 bps since February 2025. This move, supported by liquidity measures like bond purchases and a dollar-rupee swap, aims to bolster economic growth amid cooling inflation. The decision was unanimous, with Governor Malhotra citing favorable economic conditions.