In a significant development for the Indian economy, the Reserve Bank of India (RBI) has announced a reduction in the key policy repo rate by 25 basis points to 5.75%. This decision was made in the RBI’s Monetary Policy Committee (MPC) meeting and marks the third consecutive rate cut this year. The move is aimed at stimulating economic growth and boosting consumer spending. The repo rate is the rate at which the central bank lends money to commercial banks, and a cut in this rate can lead to lower borrowing costs for businesses and individuals. This reduction is expected to provide a much-needed impetus to various sectors of the economy, including real estate, automobile, and manufacturing industries. The RBI also revised its GDP growth forecast for the current fiscal year to 7%, down from the earlier projection of 7.2%. The central bank’s decision comes amidst a slowdown in the Indian economy, with various sectors facing challenges such as liquidity crunch and weak consumer demand. The rate cut is likely to ease the financial burden on businesses and promote investments. Additionally, the RBI announced measures to enhance liquidity management and strengthen the regulatory framework for non-banking financial companies (NBFCs). These steps are expected to improve the overall financial stability in the country. The rate cut and other policy measures are seen as proactive steps by the RBI to support economic growth and mitigate the impact of global uncertainties on the Indian economy. The move is likely to be welcomed by businesses and consumers alike, as it is expected to lead to lower interest rates on loans and higher disposable income.