New Delhi, June 6 -- In a move that surpassed expectations, the Reserve Bank of India on Friday cut the repo rate by 50 basis points to 5.5%, offering relief to borrowers with likely lower EMIs. The cut - double the widely anticipated 25 basis points - takes the total reduction since February to 100 basis points.

Governor Sanjay Malhotra also revised the retail inflation outlook downward to 3.7% and projected GDP growth at 6.5% for the current fiscal. Industry leaders welcomed the move, calling it a timely boost for growth and consumption.

Anarock Group Chairman Anuj Puri said the widely anticipated move by RBI effectively lowers the cost of borrowing, making home loan EMIs easier on the pocket and thereby directly improving affordabili...