RBI Cuts Repo Rate By 50 Bps To 5.5%, Third Consecutive Reduction

The RBI on Friday cut repo rate by a higher-than-expected 50 basis points to prop up growth, which has slowed to a four-year low of 6.5 per cent in FY25.

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Following the rate cut, the key policy rate eased to a three-year low of 5.5 per cent, providing relief to home, auto and corporate loans borrowers.

This is the lowest repo rate in three years.

The repo rate — the rate at which banks borrow funds from the RBI — had last stood at 5.40 per cent on August 5, 2022.