RBI Monetary Policy Committee Reduces Policy Repo Rate by 50 bps to 5.50 Percent

The Reserve Bank of India's Monetary Policy Committee (MPC) announced a 50 basis points reduction in the repo rate, lowering it to 5.50%. This decision aims to stimulate economic growth amid moderating inflation. The MPC highlighted improved macroeconomic stability but emphasized continued vigilance on inflation risks. The rate cut is expected to reduce borrowing costs for businesses and consumers, potentially boosting investment and consumption. Governor Das reiterated the accommodative stance and data-dependent approach for future policy actions, citing global uncertainties and domestic growth revival as key considerations.