By The Reserve Bank of India (RBI) has cut its policy rate for the first time in nearly five years, reducing the repo rate by 25 basis points to 6.25%. The decision, announced by the new central bank governor, aims to stimulate economic growth amid slowing global demand and domestic challenges.
“This rate cut reflects our commitment to supporting economic recovery and ensuring price stability,” said the new RBI governor. Analysts have welcomed the move, noting that it could boost consumer spending and business investment.
However, some caution that the rate cut may lead to inflationary pressures if not managed carefully. The RBI has assured that it will continue to monitor economic indicators and adjust policies as needed.