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India’s central bank beats market expectations to deliver outsized rate cut of 50 points
- India’s central bank lowered its benchmark lending rate by half a percentage point to 5.5% on Friday, marking the third straight reduction in 2025.
- This larger-than-expected cut came after retail inflation eased to 3.16% in April and economic growth slowed to 6.5% in the fiscal year that concluded in March.
- The Reserve Bank of India has shifted its approach from supporting monetary easing to a neutral position, influenced by an encouraging start to the monsoon season and easing inflation pressures.
- Governor Sanjay Malhotra explained that the rate cut was necessary to encourage spending and investment within the country, as economic growth had not met expectations despite favorable monsoon conditions.
- The rate reduction aims to support economic momentum by lowering borrowing costs, improving household purchasing power, and fostering recovery in sectors like housing and exports.
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RBI's Bold Rate Cut: Boosting India's Auto Sector Growth
RBI's Bold Rate Cut: Boosting India's Auto Sector Growth In a strategic move, the Reserve Bank of India has slashed the repo rate by 50 basis points, a decision likely to rejuvenate the auto sector through more affordable loan options, according to the Society of Indian Automobile Manufacturers (SIAM).This rate reduction comes as growth has dipped to a four-year low, with the new policy rate now at a three-year low of 5.5 percent. The Automotive…
·India
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The markets expected a reduction of 25 basis points. Also reduced by one percentage point the cash reserve ratio of the credit institutions
·Milan, Italy
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Total News Sources99
Leaning Left14Leaning Right15Center15Last UpdatedBias Distribution34% Center, 34% Right
Bias Distribution
- 34% of the sources are Center, 34% of the sources lean Right
34% Right
L 32%
C 34%
R 34%
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