The Reserve Bank of India's, six-member Monetary Policy Committee (MPC) reduced the repo rate, or the rate at which the RBI lends to other banks, by 25 basis points to 6.25% on Friday. The RBI hasn't lowered interest rates in five years, with the most recent one occurring in May 2020. As of right now, the repo rate was 6.5%. The action was taken just one week after the Centre lowered personal income taxes in an effort to increase spending. The policy decision was announced by RBI Governor Sanjay Malhotra, who stated that inflation was in line with the target.