In a significant development for the Indian economy, the Reserve Bank of India (RBI) has announced a reduction in the repo rate by 25 basis points. The repo rate now stands at 5.75%, down from 6%. This move is aimed at boosting economic growth and stimulating investment in the country. The decision was made during the RBI’s Monetary Policy Committee (MPC) meeting, where the committee also decided to change the monetary policy stance from neutral to accommodative. The repo rate cut is expected to lower borrowing costs for businesses and consumers, potentially leading to increased spending and investment. This reduction comes in the wake of slowing economic growth and subdued inflation in India. The RBI’s decision is likely to be welcomed by businesses and individuals looking to avail loans at lower interest rates. The central bank’s move is also expected to have a positive impact on sectors such as real estate and automobile, which have been facing challenges due to high borrowing costs. Overall, the repo rate cut is seen as a positive step towards reviving economic growth in India.