India’s central bank has cut its benchmark policy rate to 5.5%, marking the lowest level since August 2022. This decision follows a series of rate cuts, with the latest move driven by softened inflation and lower-than-expected growth amidst global uncertainties. RBI Governor Sanjay Malhotra emphasized that the Indian economy remains strong and stable despite challenges. The central bank maintained its full-year GDP estimate at 6.5%, signaling a slowdown compared to the previous year’s 9.2%. With inflation trending downward, the RBI sees room for further monetary easing. However, given the recent significant rate cut, the bank announced a shift to a ‘neutral’ monetary policy stance from ‘accommodative.’ \n— new from CNBC
