In a move to boost the Indian economy amidst global economic uncertainties heightened by trade tariffs, the Reserve Bank of India (RBI) has announced a reduction in the repo rate to 6.5%. The central bank has also taken an accommodative stance, indicating the possibility of more rate cuts in the future. With a focus on promoting growth, the RBI has acknowledged the challenges ahead and revised its GDP growth projections for the fiscal year 2025-26 to 6.5%. This decision comes at a crucial time when various sectors are grappling with the impact of the ongoing global economic tensions. The RBI’s proactive approach is aimed at providing support to businesses and consumers, ultimately stimulating economic activity. By lowering the repo rate, the central bank hopes to encourage borrowing and spending, which could help in reviving the economy. This monetary policy adjustment is expected to have a positive impact on industries such as real estate, manufacturing, and consumer goods. As India navigates through a complex economic landscape, the RBI’s measures are intended to mitigate risks and create a conducive environment for sustainable growth. The move is likely to be welcomed by businesses and investors looking for stability and conducive monetary conditions.

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RBI cuts repo rate to 6.5% amid global economic uncertainties, signals potential for more reductions, revises GDP growth projections.
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