RBI cuts repo rate to 5.5%

The Reserve Bank of India (RBI) has decided to cut the repo rate by 50 basis points today to 5.5 per cent from 6 per cent earlier. This is the RBI’s third consecutive repo rate cut as tepid inflation allowed the bank to focus on spurring economic growth. Cash Reserve Ratio (CRR) has also been slashed by 100 basis points while Marginal Standing Facility (MSF) and Bank rate stand adjusted at 5.75.

The Central Bank, in its bi-monthly monetary policy meeting announced today, has shifted its policy stance from ‘accommodative’ to ‘neutral’.