India’s central bank, the Reserve Bank of India (RBI), has announced a cut in its policy rate for the first time in nearly five years. The decision, made under the leadership of the new central bank governor, aims to stimulate economic growth amid slowing global demand and domestic challenges.

The repo rate has been reduced by 25 basis points to 6.25%, marking a significant shift in monetary policy. “This decision reflects our commitment to supporting economic recovery and ensuring price stability,” said the new RBI governor.

Analysts have welcomed the move, noting that it could boost consumer spending and business investment. However, some caution that the rate cut may lead to inflationary pressures if not managed carefully.