The Reserve Bank has reduced interest rates in the country, marking the first such cut in nearly five years. The reduction in the key repo rate highlights the strength of the Indian economy. India remains strong, with a robust treasury and one of the world’s largest reserves of gold and foreign currency.
The repo rate has been lowered from 6.5% to 6.25%. In his first major address since taking charge as RBI Governor, Sanjay Malhotra hinted at relief measures, which have now been implemented. The decision to reduce interest rates** was taken unanimously by the RBI’s Monetary Policy Committee (MPC).
The MPC consists of three RBI members and three external members who collectively make key policy decisions. RBI Governor Sanjay Malhotra noted that the global economic landscape remains challenging, with growth falling below historical averages. While the global economy faces a slowdown, India continues to surge ahead.
