DK Busimess Network
The Reserve Bank of India (RBI), in a major monetary policy move, has cut the repo rate by 50 basis points to 5.50%. This decision was announced by RBI Governor Sanjay Malhotra on Friday, following the Monetary Policy Committee’s (MPC) meeting.
This marks the third consecutive rate cut this year, reflecting RBI’s intent to stimulate economic growth amid evolving macroeconomic conditions. The central bank had previously reduced the rate by 25 basis points each in February and April.
Alongside the rate cut, the RBI also revised its policy stance from ‘Accommodative’ to ‘Neutral’. This change signals a more balanced approach toward managing inflation and supporting growth simultaneously.
The repo rate is the interest rate at which RBI lends to commercial banks. A lower rate often leads to cheaper loans, potentially encouraging borrowing and investment in the economy.
With inflation moderating and growth requiring a boost, the RBI’s move is expected to ease liquidity and support financial stability in the coming quarters.
Instagram: Click here
LinkedIn: Click here
For Collaboration and Business: dkbusinessnetwork@gmail.com
