RBI's significant rate cut targets economic boost
The Reserve Bank of India just dropped its repo rate by 0.5%, bringing it down to 5.5%.
This is the third cut this year, and it's all about making borrowing easier so people and businesses feel more confident to spend and invest.
The RBI also switched its policy stance to "neutral," meaning they're open to changing rates as needed.
RBI's move aims to stimulate demand and kickstart economy
With companies holding back on new investments because of uncertainty, the RBI hopes this move will spark demand and get the economy moving again.
This should help boost both spending and investment, especially since inflation has cooled off faster than expected.
Big banks like SBI and Bank of Baroda have already lowered their loan rates—so home loans and other borrowings just got a bit lighter on your wallet.