Amidst the current global economic uncertainties, the Reserve Bank of India (RBI) has taken a significant step by reducing the repo rate to 6.5% and shifting towards an accommodative stance. This move indicates the potential for further rate cuts in the future to stimulate economic growth in India. In light of the challenges faced, the RBI has revised its GDP growth projections for the fiscal year 2025-26 to 6.5%, reflecting a cautious approach towards the country’s economic outlook. By adopting a growth-supportive monetary policy, the RBI aims to counterbalance the impact of trade tariffs and other external factors affecting the Indian economy. This decision comes at a crucial time when policymakers are seeking ways to bolster economic activity and attract investments. The RBI’s proactive measures are expected to provide some relief to businesses and consumers grappling with the uncertainties prevailing in the global economic landscape. Overall, the central bank’s decision to cut the repo rate and maintain an accommodative stance underscores its commitment to fostering economic stability and growth in India.