India, June 6 -- In a major policy move, the Reserve Bank of India's Monetary Policy Committee (MPC) reduced the repo rate by 50 basis points to 5.5%, down from 6%. This marks the third consecutive rate cut, following two earlier reductions of 25 basis points each in February and April.
Alongside the rate cut, the central bank also revised its policy stance from "accommodative" to "neutral," signaling a more balanced approach to future monetary actions.
Consequently, the Standing Deposit Facility (SDF) rate now stands at 5%, while the Marginal Standing Facility (MSF) rate and the Bank Rate have been adjusted to 5.75%.
The aggressive rate cut comes on the back of easing retail inflation, which has dropped well below the RBI's medium-term ...