India’s Reserve Bank of India (RBI) has made a bold move to jumpstart its slowing economy, cutting its key lending rate by 25 basis points—the first such cut since 2020. 🌍 The policy repo rate now stands at 6.25%, down from 6.5%, signaling a shift toward supporting growth as GDP figures disappoint.
The decision follows weaker-than-expected economic growth of 5.4% in the July-September 2024 quarter. With October-December data pending, RBI Governor Sanjay Malhotra emphasized that 'growth-inflation dynamics' allowed room for action. 💼 Despite hopes for recovery, growth remains far below last fiscal year’s 8.2% high.
Malhotra warned of risks like global market volatility, trade uncertainties, and extreme weather, which could derail progress. 🌦️ Analysts say the rate cut is a lifeline for businesses and borrowers, but will it be enough? Stay tuned as India navigates this economic tightrope!
