The Reserve Bank of India’s Monetary Policy Committee recently announced a 25 basis points cut in the repo rate, bringing it down to 6%. This decision comes in light of global economic uncertainties, prompting the RBI to adopt an accommodative stance. Despite a slight reduction in the GDP growth forecast for the fiscal year 2025-26 to 6.5%, the Consumer Price Index (CPI) inflation outlook remains stable at 4%. The move aims to stimulate economic growth and bolster liquidity in the market. This decision is expected to have significant implications for borrowers, with the potential for lower interest rates on loans. Overall, the RBI’s decision reflects its commitment to supporting economic recovery and stability in the face of ongoing global challenges.