The Reserve Bank of India (RBI) delivered a larger-than-expected 50bp cut to the repo rate, bringing it down to 5.5%. This brings total rate cuts by the RBI to 100bp in this cycle, leaving the real policy rate at 2.3%. The RBI also reduced the cash reserve ratio by a massive 100bp to 3%, the lowest since 2021. The RBI’s rate actions today hint at growing conviction within the Monetary Policy Committee that lower inflation is likely to persist, and that GDP growth remains on a weaker trajectory. By front-loading rate cuts, the RBI seems keen to ensure the benefits of lower rates reach the economy and that there’s ... (full story)