Big news from India! 🇮🇳 The Reserve Bank of India (RBI) has just announced a 25 basis point cut in its key lending rate, marking the first rate cut since May 2020. This move drops the policy repo rate from 6.5% to 6.25%, aiming to give the economy a much-needed boost.
Why the change? 🤔 India's GDP growth came in at 5.4% for the July-September quarter, falling short of expectations. With the October-December figures on the horizon, the RBI is taking steps to support growth amid slowing momentum.
In a statement following the monetary policy review, the newly appointed RBI Governor Sanjay Malhotra emphasized that the current dynamics between growth and inflation have created room for the central bank to foster economic expansion. While growth is expected to pick up from last quarter's dip, it's still trailing behind the 8.2% growth rate seen in the previous fiscal year.
Governor Malhotra also highlighted some challenges ahead, including volatility in global financial markets, ongoing uncertainties in global trade policies, and adverse weather events that could pose risks to India's growth and inflation outlook.
This rate cut is a strategic move to make borrowing cheaper, encouraging both businesses and consumers to invest and spend more. 📈 Whether this will reignite India's economic engine remains to be seen, but it's a clear signal that the RBI is ready to take action to support the nation's growth. Stay tuned for more updates as India navigates these economic tides! 🌊✨
