To provide ample liquidity to support the policy transmission, the central bank reduced the cash reserve ratio to 3% from 4%.

Defence expenditure was pegged at 1.4 per cent of GDP in the Budget for 2025-26 but it may widen, depending on tensions ...

After Friday’s decision, the repo rate now stands at 5.5%, the lowest it has been since August 2022 when it was at 5.4%.