Reserve Bank Of India Cuts Repo Rate.

On February 7, 2025, the Reserve Bank of India (RBI) reduced the repo rate by 25 basis points to 6.25%, marking the first rate cut since May 2020.

The RBI projects India's real GDP growth at 6.7% for the fiscal year 2025-26, with inflation expected to moderate to 4.2% during the same period.

The rate cut is anticipated to make loans for homes, cars, and other purposes more affordable, potentially boosting consumer spending and investment. However, some bankers suggest that additional liquidity measures may be necessary to stimulate loan growth effectively.