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Mumbai, Dec 5 (PTI) Following are the highlights of the bi-monthly monetary policy announced by Reserve Bank Governor Sanjay Malhotra after the Monetary Policy Committee (MPC) meeting on Friday: * Repo rate reduced by 25bps to 5.25 pc; * 4th rate cut, totalling 125 bps, since February 2025; * MPC also decided to continue with neutral stance; * GDP growth forecast for FY26 raised to 7.3 pc from 6.8 pc; * Inflation estimates lowered to 2 pc from 2.6 pc; * Policy space exists to support growth momentum; * High-frequency indicators suggest economic activity holding up in Q3; * RBI to conduct OMO purchases of G-secs of Rs 1 lakh cr; * RBI will also conduct 3-year USD/INR buy-sell swap of USD 5 bn; * Asset quality, profitability of banks continue to remain robust; * Guv says committed to provide sufficient durable liquidity to banking system; * CAD expected to remain modest during 2025-26; * As on Nov 28, forex reserves stood at USD 686.2 bn; * Next MPC scheduled during Feb 4 to 6, 2026. PTI NKD NKD DR DR