RBI Initiates First Rate Cut in Five Years to Support Growth

India’s central bank has lowered its policy rate by 25 basis points to 6.25%, marking its first such action in nearly half a decade. The move aims to reignite a moderating economy by making borrowing more accessible for businesses and consumers. Despite inflation hovering near the lower end of the central bank’s target, this policy shift underscores a recalibrated focus on stimulating domestic demand amid global economic headwinds. Investors and market watchers now expect another cut in April, particularly if inflation continues easing and growth dynamics further improve.