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

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.

In its April monetary policy meeting, RBI had reduced the repo rate by 25 bps and also shifted the policy stance to ‘accommodative’ from ‘neutral’.