India's central bank cuts key interest rate for the first time

India's decision to lower its key interest rate by 0.25% to 6.25% for the first time in nearly five years is a significant move aimed at addressing economic challenges. The country is facing its lowest growth forecast in four years, primarily due to weak manufacturing performance and a slowdown in corporate investments. Despite inflation still exceeding the Reserve Bank of India’s (RBI) target, the reduction signals a shift in policy to stimulate economic activity. The central bank’s forecast of slower inflation, particularly in food prices, indicates that the rate cut is part of a broader strategy to balance inflation control with growth stimulation. This action could help boost consumer spending and investment, fostering a more favorable economic environment as the country navigates its recovery. As India grapples with these economic pressures, this move by the RBI could have a lasting impact on growth prospects in the coming years. For further insights, check out the full article: [India Cuts Key Interest Rate for the First Time in Five Years](https://issueinside.blogspot.com/2025/02/india-cuts-key-interest-rate-for-first.html).