RBI cuts repo rate by 50 bsp, CRR by 100 bsp
RBI cuts the repo rate by 50 bps and CRR by 100 bps to enhance liquidity and support economic growth through increased lending and lower borrowing costs.
RBI cuts repo rate by 50 bsp, CRR by 100 bsp
Mumbai, June 06
The RBI, post its monetary policy committee meet, has cut its repo rate by 50 basis points. Now, the repo rate stands at 5.5 per cent from 6 per cent earlier. Moreover, it brought down cash reserve ratio by 100 basis points.
The step brings a big cheer to loan borrowers as EMIs will come down substantially with a cumulative 100 basis points repo rate cut since February this year. The MPC also decided to change the stance from accommodative to neutral.
RBI’s policy comes at a time when the global economy faces increased uncertainty due to US President Donald Trump’s reciprocal tariffs. In the last policy RBI governor Sanjay Malhotra had warned of possible global economic turmoil arising due to tariff wars.
Interest rate decision is higher than market estimates, major focus would be on stance and further comments on policy)
Talking to Bizz Buzz, Venkatakrishnan Srinivasan of Rockfort Fincap says, “It is a shift from accommodative to neutral. Neutral word pushed up the yields again.”
EoM.
