06/06/2025
The Reserve Bank of India (RBI) has cut the repo rate by 50 basis points to 5.5% as of June 6, 2025, shifting its policy stance from ‘accommodative’ to ‘neutral’. This is the third consecutive rate cut in 2025, totaling a 100 basis point reduction since February. The decision was driven by a significant decline in retail inflation, which eased to 3.16% in April, well below the RBI’s 4% target. The rate cut is expected to lower borrowing costs and EMIs for consumers and businesses.
