In a recent development in the Indian financial sector, the Reserve Bank of India (RBI) has announced a significant reduction in the repo rate by 25 basis points. This move by the RBI is aimed at boosting the Indian economy and providing relief to borrowers. The repo rate now stands at 5.75%, down from 6.00%. The reverse repo rate has also been adjusted to 5.50%. This decision comes in the wake of slowing economic growth and subdued inflation. The reduction in the repo rate is expected to lower the cost of borrowing for consumers, including home loan borrowers and businesses. This move is likely to stimulate spending and investment in the economy. The RBI has also revised its GDP growth forecast for the current fiscal year to 7.0%, down from the earlier projection of 7.2%. The central bank has indicated that it will maintain its accommodative stance to support growth while ensuring that inflation remains within the target range. The RBI’s decision to cut the repo rate is likely to be welcomed by borrowers and is expected to have a positive impact on various sectors of the economy. Experts believe that the reduction in the repo rate will lead to lower EMIs for borrowers and could boost consumer sentiment. The banking sector is also likely to benefit from this move as lower interest rates could lead to an increase in credit off-take. Overall, the RBI’s decision to cut the repo rate is seen as a proactive step to address the current economic challenges facing India. The impact of this rate cut is expected to be felt across different segments of the economy in the coming months.