The Reserve Bank of India’s (RBI) Monetary Policy Committee recently announced a 25 basis points reduction in the repo rate to 6%, along with a shift in stance to accommodative in light of global economic uncertainties. The GDP growth forecast for the fiscal year 2025-26 has been slightly revised downwards to 6.5%, while the Consumer Price Index (CPI) inflation outlook continues to remain benign at 4%. This move by the RBI aims to stimulate economic growth and boost consumption in the country. The decision comes amidst concerns over the economic impact of the ongoing global challenges. The accommodative stance is expected to provide a much-needed impetus to various sectors, especially at a time when the economy is striving to recover from the pandemic-induced slowdown. As the RBI continues to monitor the evolving economic situation, this rate cut is seen as a step towards supporting the economy and maintaining price stability. It is anticipated that the reduction in the repo rate will lead to lower borrowing costs for businesses and individuals, thereby encouraging investments and spending. The RBI’s decision is likely to have a positive impact on the overall economic landscape of India, providing a conducive environment for growth and development.