The Reserve Bank of India’s 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 response to global economic uncertainties. Despite a slight reduction in the GDP growth forecast for FY 2025-26 to 6.5%, the Consumer Price Index (CPI) inflation outlook remains stable at 4%. This decision by the RBI aims to stimulate economic growth and maintain inflation within the target range. The accommodative stance suggests a willingness to support growth while keeping inflation in check. The move is expected to have a positive impact on borrowing costs for businesses and individuals, potentially boosting investments and consumption. It also reflects the central bank’s commitment to supporting the economy amid challenging global conditions. The decision comes as part of ongoing efforts to manage the economic impact of the COVID-19 pandemic and other external factors. The RBI’s proactive approach demonstrates its readiness to take necessary measures to safeguard India’s economic stability and resilience.