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.

The RBI cut the repo rate by 25 basis points to 6.25%, marking its first reduction in five years. The monetary stance remains neutral, with a focus on inflation and growth. Sectors like banking, auto,