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RBI Cuts Interest Rates, CRR to Boost Growth
June 07, 2025
|Hindustan Times East UP
RBI has now cut interest rates by a total of 100 basis points in 2025
MUMBAI: The Reserve Bank of India (RBI) cut interest rates by more than expected 50 basis points on Friday, a third consecutive reduction, and unexpectedly reduced the cash reserve ratio for banks to provide a major liquidity fillip to support the economy amid geopolitical and tariff headwinds.
The RBI's six-member monetary policy committee, headed by governor Sanjay Malhotra and consisting of three external members, voted five to one to lower the benchmark repurchase or repo rate by 50 basis points to 5.5%. It also cut the cash reserve ratio (CRR) by 100 basis points to 3%, adding ₹2.5 lakh crore to already surplus liquidity in the banking system.
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