In a move to address 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, hinting at the possibility of more rate cuts in the future. This decision comes as the RBI strives to implement a growth-supportive monetary policy. However, the central bank has also recognized the hurdles ahead and has revised its GDP growth forecast for the fiscal year 2025-26 downwards to 6.5%. The RBI’s proactive measures aim to stimulate economic growth and bolster financial stability in the face of external challenges.