<h1>RBI cuts repo rate by 50 basis points to 5.50% as inflation drops to six-year low</h1> The Reserve Bank of India's Monetary Policy Committee held its 55th meeting from June 4-6, 2025, chaired by the Governor. The committee voted to reduce the policy repo rate by 50 basis points to 5.50 percent, with five members supporting the 50 bps cut and one member favoring a 25 bps reduction. The decision was driven by inflation falling to a six-year low of 3.2 percent in April 2025, well below the 4 percent target, while GDP growth remained at 6.5 percent. The committee also changed its monetary policy stance from accommodative to neutral, citing limited space for further rate cuts after reducing rates by 100 basis points since February 2025. The inflation projection for 2025-26 was revised downward to 3.7 percent from 4.0 percent, while growth projections remained unchanged at 6.5 percent amid global uncertainties.