In a significant development for the Indian economy, the Reserve Bank of India (RBI) has announced a cut in the repo rate by 25 basis points to 5.15%. This decision was made during the RBI’s bi-monthly monetary policy review meeting. The repo rate is the rate at which the central bank lends money to commercial banks. This reduction is aimed at boosting economic growth amidst concerns of a slowdown. The RBI also revised the GDP growth forecast for the current fiscal year downwards to 6.1% from the earlier projection of 6.9%. Additionally, the central bank announced measures to improve liquidity flow to non-banking financial companies (NBFCs) by allowing banks to lend more to these institutions. This move is expected to ease the credit crunch faced by NBFCs, which have been grappling with liquidity issues. The RBI’s decision to cut the repo rate is likely to have a positive impact on sectors such as real estate, automobile, and consumer goods, as lower interest rates could potentially lead to increased consumer spending and investments. The reduction in the repo rate comes at a time when the Indian economy is facing challenges such as weak consumer demand and a slowdown in industrial production. The RBI’s monetary policy measures are aimed at providing a stimulus to the economy and supporting growth momentum. The decision to cut the repo rate is expected to provide relief to borrowers, including home loan borrowers, as it could lead to lower interest rates on loans. Overall, the RBI’s move is seen as a step towards reviving economic growth and boosting investor sentiment in the country.