RBI cuts repo rate to 5.25%—Here's what's up
The Reserve Bank of India just lowered its main lending rate to 5.25%.
This is the fourth cut since February, including today's decision, and it's happening because inflation has dropped below the lower end of the RBI's target band.
Basically, borrowing could get a bit cheaper.
Why did RBI do this now?
India's economy is growing fast—up 8.2% last quarter—but the rupee has slipped past ₹90 to the dollar, which isn't great for stability.
Despite these mixed signals, RBI went for a small rate cut to keep growth going without letting prices jump.
What's next?
Most economists backed this move, though some worry about currency risks.
External economists suggest more cuts might come in early 2025 if things stay steady.
The goal is to keep the economy buzzing but not let things get out of hand.