RBI Cuts CRR to 4%, Maintains Repo Rate, Lowers FY25 GDP Growth Forecast to 6.6%

RBI Cuts CRR to 4%, Maintains Repo Rate, Lowers FY25 GDP Growth Forecast to 6.6%: In its monetary policy review, the Reserve Bank of India (RBI) reduced the Cash Reserve Ratio (CRR) to 4%, while maintaining the repo rate at the current level. The RBI cited economic slowdown concerns and global uncertainties as key factors influencing the decision. Additionally, the central bank revised its GDP growth forecast for FY25 to 6.6%, down from previous estimates. The CRR cut aims to inject more liquidity into the banking system to support economic activity. The RBI’s stance reflects a cautious approach to stimulating growth while balancing inflation concerns. The move is expected to benefit credit flow and encourage investment, particularly in the manufacturing and services sectors.