The Reserve Bank of India (RBI) reduced its key repo rate on Friday for the first time since May 2020, aiming to provide stimulus to the sluggish economy, which is projected to grow at its slowest pace in four years during the current fiscal year.

Monetary Policy Committee (MPC) on Friday ‘unanimously’ decided to reduce the policy rate by 25 bps from 6.50 per cent to 6.25 per cent.

The repo rate cut, combined with the benefits from the revised tax slabs announced in the Union Budget 2025 for the new tax regime, is likely to boost loan eligibility and repayment capacity in the up