In a significant development for the Indian economy, the Reserve Bank of India (RBI) announced a reduction in the repo rate by 25 basis points to 5.75%. This decision was made during the RBI’s Monetary Policy Committee meeting and marks the third consecutive rate cut this year. The repo rate is the rate at which the central bank lends money to commercial banks. This move is aimed at stimulating economic growth and boosting lending by making borrowing cheaper for businesses and individuals. The RBI also revised its GDP growth forecast for the current fiscal year from 7.2% to 7%. Additionally, the central bank has changed its monetary policy stance from neutral to accommodative, indicating a willingness to further ease monetary policy if needed. This decision comes amidst concerns over slowing economic growth and subdued inflation. The rate cut is expected to have a positive impact on sectors such as real estate, auto, and consumer goods, which have been facing challenges due to weak consumer demand. With this rate cut, borrowers can expect a reduction in interest rates on loans, including home loans and car loans. Overall, the RBI’s decision to cut the repo rate is seen as a proactive measure to support the economy and provide a boost to key sectors.