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.

In line with market expectations, the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) reduced the repo rate by 25 basis points (bps) to 6.25 per cent. This marks the first rate cut since May 2020,

Rate-sensitive sectors reacted mixed after RBI’s 25 basis points repo rate cut to 6.25%. The BSE Sensex fell 328 points, while Nifty Auto and Realty gained. Housing sector benefits from reduced rates,