On February 7, 2025, the Reserve Bank of India (RBI) announced a 25 basis points reduction in the repo rate, bringing it down to 6.25%. This marks the first rate cut in nearly five years, aimed at stimulating economic growth amid a slowdown.  Key Highlights from the RBI’s Monetary Policy Announcement: • Inflation Outlook: The RBI projects inflation to be 4.8% for the fiscal year 2024-2025 and 4.2% for 2025-2026, indicating a downward trend.  • GDP Growth Projections: The central bank estimates real GDP growth at approximately 6.7% for the upcoming fiscal year, with quarterly projections of 6.7% in Q1, 7% in Q2, and 6.5% in both Q3 and Q4.  • Policy Stance: The Monetary Policy Committee (MPC) has maintained a neutral stance, emphasizing a balanced approach between regulation and efficiency.  This decision reflects the RBI’s commitment to fostering economic growth while keeping inflation within target levels. The rate cut is anticipated to lower borrowing costs, encourage investment, and boost consumer spending.