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,

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.

In a landmark decision, the RBI, the central bank of India, announced a rate cut after nearly five years. The RBI Governor, Sanjay Malhotra, made this announcement after conducting his first-ever MPC meeting as the new RBI Governor.