Published 21 hours ago • loading... • Updated 6 hours ago

India’s central bank beats market expectations to deliver outsized rate cut of 50 points

India’s central bank cut its benchmark repo rate by 50 basis points on Friday, lowering it from 6% to 5.5%, marking the third consecutive reduction.
The rate cut followed two previous reductions in February and April amid falling inflation, slower growth, and concerns over US tariffs affecting exports.
Retail inflation fell to 3.16% in April, the lowest in six years, driven mostly by lower food prices and a promising monsoon forecast supporting rural economy stability.
The RBI, under Governor Sanjay Malhotra's leadership, noted that economic growth is not meeting expectations, prompting a rate cut aimed at boosting domestic spending and investment amid ongoing global challenges.
Analysts expect the rate cuts, now making borrowing cheaper, to help revive demand, improve household purchasing power, and support a 6.5% growth projection for 2025-26.

Insights by Ground AI

Does this summary seem wrong?

88 Articles

All

Left

Center

Right

Devdiscourse

Center

RBI's Bold Rate Cut: Boosting India's Auto Sector Growth

RBI's Bold Rate Cut: Boosting India's Auto Sector Growth In a strategic move, the Reserve Bank of India has slashed the repo rate by 50 basis points, a decision likely to rejuvenate the auto sector through more affordable loan options, according to the Society of Indian Automobile Manufacturers (SIAM).This rate reduction comes as growth has dipped to a four-year low, with the new policy rate now at a three-year low of 5.5 percent. The Automotive…

11 hours ago·India

Read Full Article

Zero Hedge

Right

India Central Bank Shocks With Biggest Rate Cut Since Covid As Growth, Inflation Stall

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

9 hours ago·United States

Read Full Article

The Straits Times

Lean Right

India’s central bank cuts rates by more than expected to boost growth

RBI lowered the benchmark repo rate by 50 basis points to 5.5 per cent. Read more at straitstimes.com.

14 hours ago·Singapore

Read Full Article

Financial Times

Center

India cuts rates more than expected to boost economy

Policymakers lower the benchmark repo rate by half a percentage point to 5.5 per cent as fears over inflation ease

16 hours ago·London, United Kingdom

Read Full Article

Sydney Morning Herald

+2 Reposted by 2 other sources

Lean Left

Reserve Bank could deliver shoppers plenty of pre-Christmas cheer

The expectation of an interest rate cut next month has soared in recent days. With more predicted cuts to follow, that could mean lots of Christmas cheer for the nation’s shoppers.

16 hours ago·Sydney, Australia

Read Full Article