Current Affairs - Economy - Discussion

The Reserve Bank of India reduced the repo rate by 0.25%, or 25 basis points, bringing it down from 6.25% to 6%. This marks the second consecutive rate cut of the same magnitude, indicating a clear shift in the RBI's approach towards supporting economic growth amid a global slowdown and domestic demand concerns. The Monetary Policy Committee unanimously agreed to the rate cut and also changed the policy stance from “neutral” to “accommodative,” which implies a greater likelihood of further cuts in the future. This move is aimed at easing borrowing costs to stimulate consumption and investment, especially during uncertain global trade conditions.