Mumbai, June 6 -- In a move to invigorate India's slowing economy and in the wake of consistently easing inflation, the rate-setting committee of India's central bank slashed the repo rate by 50 basis points (bps) on Friday, twice the 25 bps that was widely expected. Further it complemented the policy rate cut with a 100 bps reduction in the cash reserve ratio (CRR). A basis point is one-hundredth of a percentage point.

"Inflation is under a lot of control now, and we can accept that we have won the war," RBI governor Sanjay Malhotra said at a media briefing on Friday following the MPC meeting, adding that the central bank has reduced inflation projection for FY26 to 3.7% from 4% earlier.

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