In a move to counteract global economic uncertainties exacerbated by trade tariffs, the Reserve Bank of India (RBI) has announced a reduction in the repo rate to 6.5% and has taken on an accommodative stance, indicating the possibility of additional rate cuts in the future. With a focus on promoting growth through its monetary policy, the RBI has recognized the obstacles ahead and has revised its GDP growth forecast for the fiscal year 2025-26 to 6.5%. This decision comes at a critical time when the global economy is facing challenges, and central banks around the world are adjusting their policies to navigate through uncertain times. By lowering the repo rate, the RBI aims to stimulate economic activity, encourage borrowing and spending, and ultimately bolster the country’s economic growth. The move is expected to have widespread implications across various sectors, including manufacturing, real estate, and consumer spending. As India strives to maintain its position as one of the fastest-growing major economies, the RBI’s decision to cut the repo rate is a significant step towards achieving this goal. The central bank’s proactive approach and willingness to adapt to changing economic conditions demonstrate its commitment to supporting India’s economic development and stability in the face of global challenges.