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 repo rate, till now, stood at 6.5 per cent. The move comes barely a week after the Centre cut personal income tax to boost consumption.

Just days after the central bank cut the key policy repo rate, the rate at which the RBI lends to banks, by 25 basis points to 6.25%, the state-run bank raised its lending rate benchmark. UCO Bank’s M