RBI cuts repo rate by 50 bps

RBI Governor Sanjay Malhotra said the monetary committee has agreed to cut rates by 50 basis points to 5.5% and have changed the stance to 'neutral' from accommodative.

Reserve Bank of India (RBI) Monetary Policy Committee (MPC) cuts Repo Rate by 50 bps to 5.50%. The policy Repo Rate is now at lowest level in nearly 3 years. RBI surprises street with a bigger than expected 50 bps rate cut. RBI governor said inflation is likely to undershoot RBI's target while growth remains challenging.

Monetary Policy Committee announces change in stance to NEUTRAL from ACCOMMODATIVE.

RBI revised inflation forecast for FY26 lower to 3.7% from 4%.

Global growth and trade projections have been revised downwards.

RBI maintains FY26 GDP forecast at 6.5%.