Why did RBI cut repo rate?
RBI cut repo rate by 50 bps to 5.5%, lowest in three years. According to economists, this was largely due to inflation remaining below the 4% target. "[Monetary Policy Committee] felt that core inflation is expected to remain benign. Frontloading of rate cut will support growth...it's imperative," RBI Governor Sanjay Malhotra said. This move aims to boost economic activity.