The Reserve Bank of India’s Monetary Policy Committee announced a 25 basis points reduction in the repo rate to 6%, along with a change in stance to accommodative, in response to global economic uncertainties. The GDP growth forecast for the fiscal year 2025-26 has been adjusted slightly downward to 6.5%, while the Consumer Price Index (CPI) inflation outlook continues to remain benign at 4%. This move is aimed at supporting economic growth and maintaining price stability in the country. The decision comes amidst concerns over the impact of the Omicron variant and rising global crude oil prices on the Indian economy. The accommodative stance indicates that the RBI will continue to support growth through liquidity measures and low-interest rates. Experts believe that the rate cut will provide a much-needed boost to various sectors, including manufacturing, real estate, and consumer goods. The RBI’s proactive approach is seen as crucial in navigating the challenges posed by the ongoing pandemic and its economic repercussions. Market analysts are closely watching the central bank’s policy decisions to gauge the trajectory of India’s economic recovery.