The Reserve Bank of India’s Monetary Policy Committee (MPC) cut the repo rate by 50 basis points to 5.5%

The Reserve Bank of India’s MPC cut the repo rate by 50 basis points to 5.5%, marking a continuous trend of rate reductions. RBI Governor Sanjay Malhotra linked this decision to favorable macroeconomic indicators and a focus on fostering economic growth.

In response, the Indian stock market reacted positively: the Sensex rose by 488 points to 81,930.37, and Nifty increased by 168 points to 24,919.30. The RBI also reduced the cash reserve ratio, facilitating significant liquidity into the banking system.