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 change in stance to accommodative in light of global economic uncertainties. The GDP growth forecast for the fiscal year 2025-26 has been marginally adjusted downward to 6.5%, while the Consumer Price Index (CPI) inflation outlook continues to remain favorable at 4%. This move by the RBI aims to stimulate economic growth and boost investment in the country. The accommodative stance indicates a willingness to support economic activity and is seen as a positive step towards addressing concerns surrounding economic slowdown. The decision comes amidst a backdrop of various challenges faced by the Indian economy, including global trade tensions and domestic consumption slowdown. Analysts are closely monitoring the impact of this rate cut on sectors such as real estate, auto, and consumer goods, which are expected to benefit from lower borrowing costs. Overall, the RBI’s decision is anticipated to provide a much-needed impetus to the economy and support the government’s efforts to revive growth.