The Reserve Bank of India (RBI) on Friday took bold decisions in its second bi-monthly monetary policy of the current fiscal (FY26). The RBI Governor Sanjay Malhotra-led Monetary Policy Committee (MPC) decided to cut the repo rate by 50 basis points (bps) to 5.50% from 6.00% earlier. This is the central bank’s third consecutive repo rate cut.
While it lowered the repo rate by 50 basis points (bps), the third cut in a row, front-loading them on the back of softening inflation, it also went for a 100 bps cut in the cash reserve ratio (CRR).
The MPC also decided to change the policy stance to ‘Neutral’ from ‘Accommodative’, RBI Governor Sanjay Malhotra announced in his monetary policy speech.
