RBI Slashes Repo Rate to 5.50% Amid Easing Inflation, Signals Pro-Growth Stance 2n5fs

By-Ashish Kukreja, CEO and Founder of Homesfy.in and mymagnet.io

“The RBI’s decision to cut the policy repo rate by 50 basis points (bps) to 5.50% is driven by easing inflation and a gradual recovery in economic activity. This marks the third consecutive repo rate cut since February 2025, with the rate falling by a total of 100 bps in the first half of the year.

With GDP growth for the financial year 2026 projected at 6.5% and inflation expected to remain around 4%, the move reflects cautious optimism amid global uncertainties. On the external front, robust services exports and strong remittance inflows have helped offset the merchandise trade deficit, keeping the current deficit sustainable. This proactive step aims to enhance liquidity, investments, and make borrowing, especially for homebuyers, more affordable, though the benefit depends on timely transmission by banks.”