THE RBI cut the repo rate by 25 basis points to 6.25%, marking its second rate cut of the year. The central bank shifted its stance from "neutral" to "accommodative" to support economic growth amid global trade tensions. It revised India’s GDP growth forecast for FY 2026 down to 6.5% due to external challenges. The RBI aims to stimulate demand and ensure liquidity, while closely monitoring inflation. The accommodative stance signals readiness for further action if needed to support the economy.