RBI cuts Repo Rate by 25 points to 6% amid global trade war

The Reserve Bank of India has cut the repo rate by 25 basis points to 6%, potentially leading to lower EMIs for home loans. The RBI has also lowered the GDP forecast for FY26 to 6.5% from the earlier 6.7%. The Monetary Policy Committee unanimously decided to change the stance from neutral to accommodative, hinting at possible further easing. The RBI Governor expressed concerns over global trade uncertainties and their potential impact on inflation and growth.