The Reserve Bank of India’s Monetary Policy Committee recently announced a 25 basis points reduction in the repo rate to 6%, along with a shift in stance to accommodative to counter global economic uncertainties. The GDP growth forecast for the financial year 2025-26 has been marginally adjusted to 6.5%, while the Consumer Price Index (CPI) inflation outlook continues to remain favorable at 4%. This move is aimed at boosting economic growth and maintaining price stability in the country. The decision comes in the wake of various challenges faced by the Indian economy, including the impact of the ongoing COVID-19 pandemic and its repercussions on various sectors. The RBI’s proactive approach is expected to provide some relief to businesses and consumers, encouraging borrowing and spending. Additionally, the accommodative stance indicates a willingness to support growth initiatives, which could have a positive impact on the overall economic scenario. As India navigates through these uncertain times, such measures are crucial in ensuring a stable and sustainable recovery. The RBI’s decision is likely to have far-reaching implications on various aspects of the economy and could potentially shape the trajectory of growth in the coming months.