On 20 June 2025, RBI’s Monetary Policy Committee implemented a 50 bps repo rate cut to 5.50% and reduced the Cash Reserve Ratio (CRR) by 100 bps to 3%. A front-loaded, neutral stance was adopted to stimulate consumption and investment amid declining inflation (2.82% in May). Five of six members supported the move. The decision widens lending capacity and provides durable liquidity.