RBI cuts repo rate to 6.25% for the first time in nearly five years to support growth amid cooling inflation. Markets react mildly as economists foresee further easing ahead.
The Reserve Bank of India (RBI) reduced its key repo rate by 25 basis points to 6.25% on Friday, February 7, marking the first interest rate cut in nearly five years. This move comes as part of a broader effort to support India’s sluggish economy amid cooling inflation.
The rate cut is the first since May 2020, when the pandemic prompted aggressive monetary easing. Since then, the RBI focused on controlling inflation, which had remained above the 4% target for much of the period.
Following the announcement, India’s stock markets reacted with mild declines, with the Nifty 50 index dropping 0.5%. The yield on 10-year government bonds rose to 6.7%, and the rupee weakened slightly against the dollar.
The RBI’s updated forecasts project a real GDP growth of 6.7% for the next fiscal year, with inflation expected at 4.2%. For the current fiscal year, the RBI downgraded growth expectations to 6.4%, its weakest forecast in four years, from 6.6%. Inflation is projected at 4.8% for the fiscal year ending in March.
Although the MPC maintained a “neutral” policy stance, contrary to some predictions of a shift to "accommodative," further rate cuts could be on the horizon, according to economists like Shilan Shah from Capital Economics. He forecasts a total of 75 basis points in cuts during this cycle, given the soft patch expected in the economy over the next few quarters.
The RBI’s decision marks a key pivot in India’s monetary policy, as the central bank seeks to foster economic recovery in a challenging global environment.
Russia’s defense ministry has accused Ukraine of carrying out four separate attacks on its energy facilities within a 24-hour period, alleging violations of a U.S.-brokered moratorium aimed at preventing strikes on each other’s critical energy infrastructure.
Sporting legends, rising stars, and international guests gathered in Madrid for the 24th Laureus World Sports Awards, where the global sporting community came together to celebrate a year of exceptional achievements, inspiring moments, and the unifying power of sport.
South Korea’s former President Yoon Suk Yeol, who was ousted from office, appeared at the Seoul Central District Court on Tuesday to attend the second hearing in his ongoing criminal trial, where he faces serious charges of insurrection.
A U.S. airstrike on Yemen’s Ras Isa oil port has killed at least 74 people and injured 171 others, marking the deadliest known attack in President Trump’s renewed campaign against Houthi rebels and raising alarm over the widening scope of the conflict.
Iranian Foreign Minister Abbas Araqchi has signaled that a nuclear agreement with the United States remains within reach, provided Washington adopts a realistic and constructive approach ahead of the second round of negotiations with the Trump administration.
A mob attack on an Ahmadi place of worship in Karachi has left one man dead, highlighting ongoing persecution of the minority group.
A Russian court has sentenced 19-year-old Darya Kozyreva to nearly three years in prison for protesting the war in Ukraine using poetry and graffiti.
The new U.S. ambassador to Japan has called for closer military coordination with Tokyo, framing the alliance as crucial amid rising regional tensions and ongoing trade disputes.
Students in Serbia have rallied outside a police station as Belgrade University’s rector is questioned over support for anti-government protests.
OpenAI has unveiled a new option called Flex processing, an API service designed to provide more affordable AI model usage in exchange for slower response times and occasional resource unavailability.
The Russian ruble has emerged as the top-performing currency globally in 2025, registering an impressive 38% appreciation against the US dollar since the beginning of the year, according to a report by Bloomberg.
A small plane crashed near Kopake, New York, on April 13, killing at 6 people. The Mitsubishi MU-2B aircraft, carrying six people, went down under unclear circumstances. This marks the second aviation accident in New York in a week, raising safety concerns.
Several regions in Ukraine faced heightened alert on Palm Sunday, as reports of explosions and missile threats drew public attention and official responses.
Severe rainfall on April 17 led to flooding and landslides in the Piedmont region, prompting a large-scale emergency response from over 400 firefighters.
Start your day informed with AnewZ Morning Brief: here are the top news stories for April 16th, covering the latest developments you need to know.
The Russian rouble surged past 81 to the U.S. dollar on Thursday, marking a 40% increase since the beginning of 2025.
In response to President Donald Trump's sweeping new tariffs, a number of global companies are eyeing expansion into the United States to minimize the economic fallout from the trade measures.
Google plans to appeal parts of a recent U.S. court ruling that found it had unlawfully maintained monopoly power in parts of the online ad market, specifically in publisher ad servers and ad exchanges, while the court dismissed other antitrust claims.
The European Central Bank cut its main interest rate by a quarter point on Thursday, citing rising trade tensions following U.S. President Donald Trump’s sweeping tariff campaign. The decision brings the rate down to 2.25 percent, marking the ECB’s seventh cut in the past year.
Nvidia will take a $5.5 billion charge after the U.S. restricted exports of its H20 AI chip to China, citing security concerns. The move targets China's access to advanced tech, impacting Nvidia's key market amid growing global AI competition.
A mob attack on an Ahmadi place of worship in Karachi has left one man dead, highlighting ongoing persecution of the minority group.
A Russian court has sentenced 19-year-old Darya Kozyreva to nearly three years in prison for protesting the war in Ukraine using poetry and graffiti.
The new U.S. ambassador to Japan has called for closer military coordination with Tokyo, framing the alliance as crucial amid rising regional tensions and ongoing trade disputes.
Students in Serbia have rallied outside a police station as Belgrade University’s rector is questioned over support for anti-government protests.
OpenAI has unveiled a new option called Flex processing, an API service designed to provide more affordable AI model usage in exchange for slower response times and occasional resource unavailability.
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