In a significant development for the Indian economy, the Reserve Bank of India (RBI) has announced a reduction in the repo rate by 25 basis points. This decision was made during the RBI’s Monetary Policy Committee (MPC) meeting and brings the repo rate down to 5.75%. The repo rate is the rate at which the central bank lends money to commercial banks, and a reduction in this rate can lead to lower interest rates for consumers. This move is aimed at boosting economic growth and comes in the wake of concerns over a slowdown in various sectors. The RBI also revised its GDP growth forecast for the current fiscal year to 7%, down from the earlier projection of 7.2%. Additionally, the central bank has changed its stance on monetary policy from neutral to accommodative, signaling a shift towards a more growth-oriented approach. The decision to cut the repo rate is expected to have a positive impact on sectors such as real estate, auto, and consumer goods, which have been facing challenges due to high interest rates. Overall, this move is seen as a step towards providing a much-needed stimulus to the economy. The reduction in the repo rate is likely to lead to lower borrowing costs for businesses and consumers, which could potentially boost investments and spending. The RBI’s decision is being closely watched by market analysts and policymakers as they assess its implications for the Indian economy.