In a move to combat global economic uncertainties, the Reserve Bank of India (RBI) has decided to reduce the repo rate to 6.5% and has taken an accommodative stance. This decision indicates a possibility of more rate cuts in the future. The RBI’s objective is to implement a monetary policy that supports growth, despite acknowledging the obstacles ahead. Consequently, the RBI has lowered its GDP growth forecast for the fiscal year 2025-26 to 6.5%. This decision is significant in the current economic climate, where trade tariffs and other global factors are creating instability. By reducing the repo rate and adopting an accommodative stance, the RBI is taking proactive steps to stimulate economic growth in India.