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 former revenue secretary in the Ministry of Finance, Malhotra is expected to announce the cuts to lower interest rates for economy’s growth which is expected to reach a four year low.

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.

Lower interest rates generally push bond prices higher as investors lock in better yields from existing bonds. However, Apurva Sheth, Head of Market Perspectives & Research at SAMCO Securities, noted that India's 10-year bond yields spiked after the rate cut since the market had already factored in the decision,

Governor Sanjay Malhotra on Friday announced that the central bank has slashed the policy repo rate by 25 basis points from 6.5 per cent to 6.25 per cent. The decision was taken on a unanimous basis.

Monetary Policy Committee (MPC) unanimously decided to cut the repo rate by 25 basis points, bringing it down from 6.50% to 6.25%. The decision is aimed at balancing growth with inflation control. While the rate cut signals a push to stimulate economic activity amid global uncertainties,

The RBI's Monetary Policy Committee cut the repo rate by 25 bps for the first time in nearly five years, maintaining a neutral stance. Governor Sanjay Malhotra noted inflation aligns with targets amid concerns over economic growth and signs of inflation nearing 4 per cent.

The newly-appointed RBI Governor Sanjay Malhotra is anticipated to announce a 25 basis points repo rate cut to 6.25% on February 7. With the slowing economic growth and easing inflation, the Monetary Policy Committee may favor rate reduction to stimulate the economy,