The Reserve Bank of India has cut its repo rate by 50 basis points. The rate will now be 5.50. The RBi has changed its policy stance to neutral and forecast an inflation rate of 3.70% for the financial year 2025-26.
The cash reserve ratio (CRR) has been cut by 100 basis points--from 4% to 3%. The GDP forecast has been maintained at 6.5%
The RBI cut its benchmark interest rate for the third time in a row following the Monetary Policy Committee (MPC) meeting today, as it continues to adopt a more growth-friendly, accommodative approach. The RBI’s Monetary Policy Committee began its meeting on June 4.
So far this year, the RBI has lowered rates by a total of 50 bps, 25 bps each in February and April and shifted to an ‘accommodative’ policy stance, citing weak inflation and slowing economic growth. Now that the RBI has reduced the repo rate by 50 bps, this year's rate cut has risen to 1%.
