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 rate cut could be the beginning of a low-interest cycle and is expected to ease the burden on loan borrowers, as banks prepare to lower interest rates on home loans, auto loans, & business credit

India’s new central bank governor cut interest rates for the first time in almost five years on Friday to help spur a slowing economy as global risks intensify.