Reserve Bank of India (RBI) has cut the repo rate by 50 basis points (bps) to 5.50 per cent. RBI Governor Sanjay Malhotra said that the Monetary Policy Committee (MPC) unanimously decided to reduce the policy rate.
Since February 2025, the RBI has reduced the policy repo rate by 100 basis points in quick succession. It has now decided to change its stance to 'neutral' from 'accommodative'.
"Under the present circumstances, the MPC is now left with very limited space to support growth. Hence, the MPC also decided to change its stand from accommodative to neutral... The fast-changing global economic situation, too, necessitates continuous monitoring and assessment of the evolving macroeconomic outlook," Malhotra said.
