Mumbai: In a significant move to boost economic growth, the Reserve Bank of India (RBI) has cut the repo rate by 25 basis points, bringing it down to 6.25%. This marks the first rate reduction since May 2020, when the central bank slashed the rate by 40 basis points to 4% amid the COVID-19 crisi
The repo rate, which determines the interest at which commercial banks borrow from the RBI, plays a crucial role in influencing lending rates in the economy. The latest cut is expected to ease borrowing costs for businesses and individuals, potentially stimulating investment and consumption.
Experts believe this decision reflects the RBI’s cautious optimism towards inflation control and economic growth. However, analysts will closely watch future monetary policy decisions, especially in the context of global economic trends and domestic inflationary pressures.
