In a recent development in the Indian economy, the Reserve Bank of India (RBI) has announced a cut in the repo rate by 25 basis points. This move is aimed at boosting economic growth and increasing liquidity in the market. The repo rate now stands at 5.75%, the lowest it has been since July 2010. The decision was made by the RBI’s Monetary Policy Committee (MPC) in its bi-monthly meeting. The repo rate is the rate at which the central bank lends money to commercial banks, and a cut in this rate usually leads to lower interest rates on loans for consumers. This reduction in the repo rate is expected to encourage borrowing and spending, thus stimulating economic activity. The RBI also revised its GDP growth forecast for the current fiscal year from 7.2% to 7%. This rate cut comes as a welcome move for businesses and consumers alike, as it is likely to make loans more affordable and boost investment. The RBI’s decision reflects its commitment to supporting economic growth amidst global uncertainties and domestic challenges. Experts believe that this rate cut will have a positive impact on various sectors of the economy, including real estate, automobile, and consumer goods. Overall, the reduction in the repo rate signals a proactive approach by the RBI towards addressing the current economic slowdown in India and spurring growth in key sectors.