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 Monetary Policy Committee (MPC) meeting, aiming to boost economic growth amidst the ongoing challenges posed by the COVID-19 pandemic. The repo rate now stands at 5.75%, down from 6%. The reverse repo rate has also been adjusted to 5.50%. This move is expected to lower borrowing costs for businesses and individuals, stimulating investment and consumption. The RBI has also revised its GDP growth forecast for the fiscal year 2022 to 9.5%, up from the previous projection of 9.2%. The central bank highlighted the need for continued policy support to nurture the fragile economic recovery. Additionally, the RBI announced measures to enhance liquidity support for small businesses and stressed sectors. The decision to reduce the repo rate comes in the wake of rising concerns over inflation and the need to support economic recovery. The RBI’s proactive stance is aimed at balancing the need for growth with the imperative of maintaining price stability. The announcement is expected to have a positive impact on the stock market and various sectors of the economy. As India navigates through these challenging times, the RBI’s decision is seen as a step in the right direction towards reviving economic growth and stability.