Good news for all, RBI cuts repo rates by 50 bps to 5.5%, announces governor Sanjay Malhotra after MPC meet

In its second policy review of the 2025-26 financial year, the Reserve Bank of India’s Monetary Policy Committee (MPC) has cut the repo rate by 50 basis points, lowering it from 6 per cent to 5.5 per cent for the third time in a row. The decision was announced by RBI GovernorRBI GovernorRBI Governor Sanjay Malhotra on Friday.

In addition to the rate cut, the MPC revised its policy stance to ‘neutral’ from ‘accommodative,’ indicating a stronger commitment to fostering economic growth in the face of shifting conditions. The move came at the conclusion of a three-day meeting that began on Wednesday.