RBI slashes repo rate by 50 basis points to 5.5%, third consecutive cut

The Reserve Bank of India (RBI) has reduced the repo rate by 50 basis points to 5.5%, marking the third consecutive rate cut. This decision comes amid a sharp drop in retail inflation to 3.16% in April and strong economic growth of 7.4% in the January-March quarter. The move is expected to make loans cheaper, benefiting borrowers, especially home buyers. The RBI has also changed its stance from accommodative to neutral, indicating a data-driven approach moving forward.