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.

Realtors’ apex body CREDAI on Friday said the RBIs decision to cut benchmark lending rate by 25 basis points might have limited direct impact and sought further reduction in the next monetary policy meet for stronger impetus to housing demand.

Today’s monetary policy reflects a steady state of thinking at RBI. Today’s rate cut continued the MPC pivot to the “neutral” stance in October and the CRR cut in December.