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. This move is aimed at boosting economic growth and increasing liquidity in the market. The repo rate now stands at 5.75%, down from 6%. The decision was made during the RBI’s Monetary Policy Committee (MPC) meeting, led by Governor Shaktikanta Das. The rate cut comes in response to slowing economic growth and subdued inflation. This reduction is expected to lower borrowing costs for businesses and individuals, potentially stimulating investment and consumption. The RBI also revised its GDP growth forecast for the current fiscal year to 7% from 7.2% previously. The central bank’s decision has been welcomed by industry experts and is expected to have a positive impact on various sectors of the economy. This move by the RBI is seen as a proactive step to address the current economic challenges facing the country. The repo rate cut is likely to have a ripple effect on interest rates in the banking system, making loans more affordable for borrowers. It is anticipated that this rate cut will provide a much-needed boost to the Indian economy and help in reviving growth momentum. With inflation under control, the RBI’s decision is expected to create a conducive environment for economic expansion. The rate cut is also likely to strengthen the Indian rupee and improve investor sentiments in the market.