Divya Delhi: The Reserve Bank of India is expected to decrease the repo rate by 25 basis points to 6.25%  The  Repo rate is the interest rate at which the central bank loans to commercial banks. Commercial banks will decrease their interest rates and  If the repo rate falls.But what occurred to the Indian economy in the last two months that the RBI will decrease its interest rate after 22 months?RBI Governor Shaktikant Das disappointed the public and business community by not announcing the anticipated rate drop in December. He cut the Cash Reserve Ratio by 50 basis points to 4%. Is  the ratio of funds each commercial bank must keep with the RBI without using for loans or government securities.When the  decreased, banks have more money to lend without lowering interest rates. The CRR cut freed up Rs. 1.16 lakh crore. Also, the central bank said last week it will inject Rs 1.50 lakh crore into banks. But why should the RBI's Monetary Policy Committee cut the repo rate? Analysts think there are several causes. The inflation rate, which has stayed above the RBI's 4% objective, is the key reason. Food prices, especially for vegetables, have dropped, but other costs remain high. The RBI is focused on cutting inflation. But the Union Budget 2025 says the middle class will have more disposable money because income up to Rs 12 lakh is tax-free. It will promote saving and small deposits, but focus on boosting spending. This will be timely since the financial system has seen a drop in deposits.As the Indian rupee has plummeted considering surpassing all records and breaching the level of 87 against US Dollar, the RBI must take steps to stop further depreciation. The $7.5 billion outflow of Foreign Portfolio Investment since   will stop if it declines. After President Donald Trump proposed harsh tariffs on imports from China, Mexico, and Canada, these countries retaliated with taxes, starting a trade war. To exploit the scenario and boost US exports, Indian businesses need more money at lower rates. Analysts believe that if the central bank decreases the repo rate by 25 basis points to 6.25%, external benchmark lending rates (EBLR) linked to the repo rate will also drop by 25 bps. It may help borrowers by somewhat lowering their equated monthly installments  .If the repo rate is decreased, commercial banks may react by reducing interest rates on loans related to the marginal cost of fund-based lending rate or Will RBI Governor Sanjay Malhotra take the leap in the first  meeting of his tenure?