RBI cuts repo rate by 50 bps to 5.50%, changes policy stance to ‘neutral’; CRR reduced by 100 bps

The Reserve Bank of India (RBI) on Friday announced its second bi-monthly monetary policy of FY26. The RBI Governor Sanjay Malhotra-led Monetary Policy Committee (MPC) decided to cut the repo rate by 50 basis points (bps) to 5.50% from 6.00% earlier. This is the central bank’s third consecutive repo rate cut. The MPC also decided to change the policy stance to ‘Neutral’ from ‘Accommodative’, RBI Governor Sanjay Malhotra announced in his monetary policy speech. The MPC said that after having reduced the policy repo rate by 100 bps in quick succession since February 2025, under the current circumstances, monetary policy is left with very limited space to support growth.