New Delhi, June 6 -- The Reserve Bank of India has reduced the repo rate by 50 basis points to 5.5% on June 6, 2025. This marks the third consecutive cut this year. This move aims to stimulate economic growth amid easing inflation, thus bringing challenges for fixed deposit (FD) investors as banks are expected to lower FD interest rates in a response to this move.

Amit Bansal, Founder, BharatLoan, believes that, "The RBI's bold move to cut the repo rate by 50 bps to 5.5% and slash the CRR by 100 bps is a decisive step toward easing systemic liquidity. With Rs.2.5 lakh crore expected to be released through the CRR reduction, this injection will significantly reduce the cost of funds for NBFCs like ours."

He further added that, "Combined ...