The Reserve Bank of India (RBI) has cut key lending rates in two successive meetings, indicating a significant expansionary shift. In April 2025, the repo rate was cut by 25 basis points, and a further 50 basis point cut was announced in the recent meeting in June, bringing the policy repo rate to 5.5%. The RBI forecasts GDP growth of 6.5% for 2025-26, and inflation within the band of 4% +/- 2%, indicating sufficient room for these rate cuts.