The Reserve Bank of India (RBI) has reduced its key lending rate, known as the repo rate, by 50 basis points to 5.5 per cent. The unanimous decision was made during the bi-monthly Monetary Policy Committee meeting chaired by RBI Governor Sanjay Malhotra.

This move brings relief to borrowers, particularly home buyers, as it could lead to lower EMIs on long-term loans. Although the global economic outlook remains uncertain and trade forecasts have been downgraded, the Governor emphasised that India is poised to maintain its high growth trajectory.

"India's resilience is supported by the robust balance sheets of five key sectors. Our economy presents significant opportunities for both domestic and international investors. We are already on a strong growth path and aim to accelerate further," said Governor Malhotra.