In a significant development for the Indian economy, the Reserve Bank of India (RBI) has announced a reduction in the repo rate by 25 basis points. The repo rate now stands at 5.75%, a move that is expected to stimulate economic growth. This decision comes in the wake of slowing economic indicators and is aimed at boosting consumption and investment. The RBI’s Monetary Policy Committee (MPC) also revised its GDP growth forecast for the current fiscal year to 7%, down from the previous estimate of 7.2%. The central bank highlighted the need to address the liquidity constraints in the financial system and expressed confidence in the measures taken to support NBFCs. The announcement of the rate cut has been welcomed by industry experts and is seen as a positive step towards reviving the economy. The reduction in the repo rate is likely to lead to lower borrowing costs for businesses and individuals, which could spur spending and investments. It is expected to have a positive impact on sectors such as real estate, auto, and consumer goods. The RBI’s decision is in line with efforts to support growth while keeping inflation in check. This move is part of a series of measures taken by the RBI to support the economy, including previous rate cuts and liquidity injections. The rate cut is expected to provide a much-needed boost to the economy and help in addressing the current slowdown.