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📢 **RBI MPC Delivers "Hat-trick" Rate Cut; Shifts Stance to 'Neutral'** The Reserve Bank of India (RBI) today announced its bi-monthly monetary policy outcome, with significant decisions impacting the Indian economy. **Key Announcements & Insights:** * **Repo Rate Cut:** RBI Governor Sanjay Malhotra announced a **50 basis points (bps) reduction** in the key repo rate, bringing it down from 5.75 per cent to **5.50 per cent**. This marks a "hat-trick" rate cut, following previous reductions in February and April. This was a sharper cut than the 25 bps many analysts had anticipated, aligning instead with a projection from the State Bank of India. * **Stance Change:** The Monetary Policy Committee (MPC) has changed its stance from 'accommodative' to **'neutral'**. This is a notable shift, as some reports had expected the RBI to retain an 'accommodative stance'. * **Economic Rationale:** The decision to slash rates aims to **boost economic growth**, which has been facing pressure from global trade disruptions and weakening global trade flows. Governor Malhotra highlighted that global growth and trade projections have been revised downwards, noting the fragile and fluid global backdrop. * **Impact on Borrowers:** A reduction in the repo rate typically leads to **lower lending rates**, which translates to reduced EMIs for both households and businesses. * **Inflation Outlook:** Despite global volatilities, Governor Malhotra indicated that food inflation appears soft and core inflation looks benign. The Consumer Price Index (CPI) in April had fallen to a six-year low of 3.16 per cent. * **MPC Composition:** The six-member MPC comprises three RBI officials—Governor Sanjay Malhotra, Deputy Governor M Rajeshwar Rao, and Executive Director Rajiv Ranjan—along with three external members: Nagesh Kumar, Saugata Bhattacharya, and Professor Ram Singh. While the Indian economy offers immense opportunities to investors, the central bank faces a tougher task stabilising it amid global volatilities.