The Reserve Bank of India cut the repo rate by 25 basis points, the first reduction in nearly five years. While the rate cut aims to boost economic growth, the RBI maintains a neutral policy stance due to global uncertainties and inflation risks,

The Reserve Bank of India announced a 25 basis point cut in the repo rate, now at 6.25%, the first reduction in five years. The decision follows declining inflation rates and the need to support economic growth.

As per a Reuters poll, more than 70% of respondents expect that RBI would change the repo rates by 25 basis points to 6.25%. However, others expect that the rates would remain unchanged as the inflation is still above the target range set by the Reserve Bank.