Mumbai, Feb 7 (PTI) Following are the highlights of the bi-monthly monetary policy announced by Governor Sanjay Malhotra on Friday: * Repo rate (short-term lending rate) reduced by 25 bps to 6.25 pc; * First rate cut after a gap of 5 years; last reduction was in May 2020; * To continue 'neutral' monetary policy stance; * GDP growth for FY'26 projected at 6.7 pc; * Inflation to come down to 4.2 pc in FY'26 from 4.8 pc in FY'25; * Food inflation pressures likely to see significant softening; * Core inflation expected to rise but remain moderate; * Banks to have 'bank.in' internet domain name, non-banks 'fin.in'; * RBI says global economic backdrop remains challenging; * Indian economy continue to remain strong, resilient; * CAD expected to remain well within sustainable level; * As on Jan 31, India's forex reserves stood at USD 630.6 billion, providing import cover of over 10 months; * Next meeting of Monetary Policy Committee scheduled for April 7-9. PTI NKD DRR

Repo rate reduction signals continued neutral monetary stance, guided by growth and inflation projections and external resilience. Reduction of the Repo rate coupled with a continued neutral policy stance constitutes the central bank's operative monetary action, linked to updated GDP and inflation projections and an assessment of sustainable external and current account conditions. The statement pairs this rate action with regulatory guidance on banking and non-bank internet domain allocations and reports foreign exchange reserves as an import cover, while scheduling the next Monetary Policy Committee meeting for subsequent review.