In a move to counter global economic uncertainties exacerbated by trade tariffs, the Reserve Bank of India (RBI) has decided to reduce the repo rate to 6.5% and has taken an accommodative stance, indicating a possibility of more rate cuts in the future. The RBI’s intention is to implement a monetary policy that fosters growth; however, it also recognizes the obstacles ahead by revising the GDP growth forecast for the fiscal year 2025-26 to 6.5%. This decision comes at a crucial time when various factors are impacting the global economic landscape, and India is striving to maintain stability and stimulate growth.