RBI trims policy interest rate by 25bps to 5.25pc, loans to get cheaper
Mumbai (PTI): Shrugging off concerns over the depreciation of rupee, the RBI has cut interest rate by 25 basis points to 5.25 per cent in a bid to further bolster economic growth, which rose to a six-quarter high of 8.2 per cent in the second quarter of the current financial year.
The development is expected to make advances, including housing, auto and commercial loans cheaper.
Announcing the fifth bi-monthly monetary policy for the current fiscal, RBI Governor Sanjay Malhotra said the Monetary Policy Committee (MPC) has unanimously decided to cut the short-term lending rate or repo rate by 25 basis points to 5.25 per cent with a neutral stance.
The rate cut comes on the back of the consumer price index (CPI) based headline retail inflation ruling below the 2 per cent lower band mandated by the government for the last three months.
India's retail inflation dropped to a historic low of 0.25 per cent in October 2025, marking the lowest level since the Consumer Price Index (CPI) series was introduced. Besides, the Indian economy has clocked better-than-expected GDP growth of 8.2 per cent in the second quarter.
However, the rupee declined to historic low and crossed 90 against a dollar earlier this week making imports costlier, raising fears of rise in inflation. Rupee has depreciated by about 5 per cent so far this year.
The RBI has sharply raised growth projection to 7.3 per cent from earlier 6.8 per cent for the current financial year.
The central bank has been tasked by the government to ensure that CPI- based retail inflation remains at 4 per cent with a margin of 2 per cent on either side.
Based on the recommendation of the MPC, the RBI reduced the repo rate by 25 bps each in February and April, and 50 basis points in June amidst easing retail inflation.
The retail inflation is trending below 4 per cent since February this year. It eased to historic low in October, aided by an easing of food prices and favourable base effect.
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US military refuelling plane crashes in Iraq, rescue is underway
Washington (AP): An American military refuelling plane taking part in the operation against Iran crashed in Iraq and rescue efforts were underway, US Central Command said Thursday.
It was not immediately clear if there were any casualties. A US official, who spoke to The Associated Press on condition of anonymity to discuss the developing situation, said the KC-135 aircraft that crashed had at least five crew members aboard.
The crash was not due to hostile fire or friendly fire, the military said in a statement, which described the plane as “a loss.”
US Central Command, which oversees the Middle East, said that two aircraft were involved and that one landed safely and the other went down in western Iraq.
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A second US official, who similarly spoke on condition of anonymity, said the other plane involved also was a KC-135 tanker.
“More information will be made available as the situation develops,” Central Command said. “We ask for continued patience to gather additional details and provide clarity for the families of service members.”
The tanker is the fourth publicly acknowledged aircraft to crash as part of the US military's operations against Iran. Last week, three American fighter jets were mistakenly downed by friendly Kuwaiti fire.
All six crew members safely ejected from the F-15E Strike Eagles and were in stable condition after being recovered, the US said.
Seven American troops have been killed in combat during the Iran war so far, while about 140 US service members have been injured, including eight severely, the Pentagon said earlier this week.
Both President Donald Trump and Defence Secretary Pete Hegseth have warned that the Iran war would likely claim more American lives before it ends.
Six of the fallen service members were killed when an Iranian drone struck an operations centre at a civilian port in Kuwait. They were in the Army Reserve and worked in logistics, keeping troops supplied with food and equipment.
They died one day after the US and Israel launched the military campaign against Iran on February 28. The Islamic Republic has retaliated with missiles and drones against Israel and several Gulf Arab states that host US armed forces.
The seventh American service member died after being wounded during a March 1 attack on the Prince Sultan Air Base, Saudi Arabia.
Trump joined grieving families for a dignified transfer at Dover Air Force Base when the remains of the first six soldiers were returned to the United States. Vice President JD Vance, Hegseth and others saluted the seventh flag-draped transfer case as it arrived this week at Dover.
The KC-135 tanker involved in the latest crash is based on the same design as the Boeing 707 airliner and entered military service more than 60 years ago. Like other long-serving aircraft, the planes have undergone various retrofits and upgrades over the years.
The KC-135 tankers typically have a crew of three. It's not immediately clear what role the extra crew members were serving aboard the flight.
According to a report from the Congressional Research Service, the Air Force last year had a total of 376 KC-135s, including 151 on active duty, 163 in the Air National Guard and 62 in the Air Force Reserve.
