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.

India’s new central bank governor cut interest rates for the first time in almost five years on Friday to help spur a slowing economy as global risks intensify.

RBI Governor Sanjay Malhotra has finally announced what the economy and the market have been waiting for: the first rate cut in post-COVID India. The MPC, said the new RBI Governor, has decided unanimously to cut the repo rate—which is the key interest rate at which the RBI lends money to commercial banks—by 25 basis points.