RBI: India's central bank slashes rates after five years
Published On Feb 7, 2025, 1:29 AM
India's central bank, the Reserve Bank of India (RBI), has cut its repo rate from 6.5% to 6.25%, marking the first rate cut in nearly five years. This decision comes as India's GDP growth is expected to slow to a four-year low of 6.7%, amid declining investment growth and corporate profits. The RBI's move aims to support economic growth and ease borrowing costs for consumers and businesses. Despite potential for further rate cuts, concerns over global economic factors and a depreciating currency due to foreign investor outflows pose risks to the Indian economy.
Stock Forecasts
INDA
Positive
The RBI's decision to cut interest rates is likely to stimulate investment and consumption in India, making it a supportive environment for economic growth. However, concerns about external economic factors and currency depreciation could offset these benefits. Overall, the outlook remains cautiously optimistic but with potential volatility in the currency markets.
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