RBI Repo Rate
- The RBI is pursuing an expansionary monetary policy to stimulate economic growth amid global uncertainties and a projected GDP slowdown (6.5% for FY 2025-26).
- Three consecutive repo rate cuts totalling 100 basis points to 5.50%.
- Significant CRR reduction reflects efforts to enhance liquidity and encourage lending.
- The " neutral" stance shift in June 2025 indicates caution due to moderating inflation, 3.2% in Apr 2025.
- RBI also advances digital initiatives like e-rupee and fraud prevention tools (eg, Mule Hunter, AI).
- While actively managing forex reserves to stabilise the rupee.
- The focus remains on balancing growth, inflation, and financial stability.
