The Reserve Bank of India (RBI) cut its key interest rate for the first time in nearly five years on Friday, as it seeks to boost the sluggish economy and sees inflation easing towards its 4% target.

"India can achieve 7 per cent growth rate and above, and we should aspire for that," Malhotra said. The RBI maintained its gross domestic product (GDP) projections for financial year 2024-25 (FY25) at 6.6 per cent and project GDP growth at 6.7 per cent for FY26.

The Reserve Bank of India has cut its key interest rate for the first time in nearly five years, as cooling inflation has offered room to stimulate the slowing economy. The central bank forecast real GDP growth for next fiscal year at 6.

India is expected to cut interest rates for the first time in nearly five years on Friday to provide stimulus to its sluggish economy, with easing price pressures giving policymakers more room to manoeuvre.

(Reuters) -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 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,