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 monetary policy committee of RBI will cut repo rate by cumulatively 75 basis points in the year 2025, Bank of Baroda said in a note.As RBI embarks upon the rate cut cycle, Bank of Baroda said it can be expected that more cuts are also on the cards,

The RBI Governor Sanjay Malhotra delivered the first interest rate cut in nearly five years. The RBI MPC reduced the repo rate cut to 6.25% from 6.50%.