The Reserve Bank of India (RBI) has cut the repo rate by 25 basis points to 6.00% in its latest policy announcement marking the second consecutive rate cut in 2025. This back-to-back easing signals a shift in the central bank’s stance toward growth amid easing inflation and global uncertainty.
The RBI cuts repo rate 2025 again after a similar reduction in February, bringing cumulative cuts this year to 50 basis points. With inflation now below the RBI’s comfort zone of 4%, the monetary policy committee (MPC) has taken a more accommodative stance to encourage lending, business expansion, and capital access.
Startups in India especially in capital-sensitive sectors like fintech, AI, and deeptech stand to benefit significantly. Lower repo rates mean cheaper loans, better credit lines from NBFCs, and a more liquidity-friendly environment for early-stage ventures. As India’s startup funding momentum picks up in Q2 2025, this policy move could act as a catalyst for stronger deal activity.
Financial markets reacted positively. The Nifty and Sensex registered modest gains, banking stocks rose, and NBFC shares showed strength. Industry analysts believe that if inflation remains stable, further easing in the RBI cuts repo rate 2025 cycle could be on the table.
For the broader economy, this move reinforces confidence in India’s growth trajectory and boosts investor sentiment across sectors. As India positions itself as a startup powerhouse, access to affordable capital will be critical and today’s repo rate cut is a step in that direction.
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