BS EDIT: RBI’s Bold Move: Rate Cut to Boost Growth

By Business StandardPublished On Jun 9, 2025

Repo Rate Slashed by 50 bps

RBI cuts policy repo rate to 5.5%, twice the expected 25 basis points

CRR Cut Adds ₹2.5 Trillion Liquidity

Cash reserve ratio lowered to 3% in four phases to ease banking funds

Liquidity Support Continues

₹9.5 trillion infused since January; call rates remain low for smooth rate transmission

Policy Stance Shifts to Neutral

RBI signals limited room for more rate cuts after recent easing

Inflation Moderates

Headline inflation falls to 3.2% in April; forecast revised slightly down

Growth Steady at 6.5%

MPC holds growth outlook but notes need for measures beyond rate cuts

Future Moves Uncertain

Repo rate may have reached its floor; future cuts depend on inflation and growth