RBI Cuts Repo Rate to 5.5% to Ease Borrowing

The Reserve Bank of India has reduced the repo rate by 0.5%, bringing it down from 6% to 5.5%, offering relief to borrowers across sectors. This is the second major monetary policy update of the fiscal year. The cut is expected to lower interest rates on housing, vehicle, education, agricultural, and personal loans, thereby reducing monthly EMIs. To improve liquidity in the market, the cash reserve ratio (CRR) has also been reduced by 1%, to be implemented in four phases.