RBI cuts repo rate by 50 bps to 5.5 pc, third consecutive reduction
Mumbai (PTI): The RBI on Friday cut repo rate by a higher-than-expected 50 basis points to prop up growth, which has slowed to a four-year low of 6.5 per cent in FY25.
Following the rate cut, the key policy rate eased to a three-year low of 5.5 per cent, providing relief to home, auto and corporate loans borrowers.
This is the lowest repo rate in three years.
The repo rate -- the rate at which banks borrow funds from the RBI -- had last stood at 5.40 per cent on August 5, 2022.
After a detailed assessment of the evolving macroeconomic and financial development, as well as the economic outlook, the Monetary Policy Committee (MPC) decided to reduce the repo rate by 50 basis points, RBI Governor Sanjay Malhotra said.
Since February 2025, the RBI has reduced the policy rate by 100 basis points. In its previous policy review in April, it had also trimmed the repo rate by 25 basis points to 6 per cent.
After reducing repo by 100 bps in quick succession, monetary policy is left with limited space to support growth, he added.
This is the first time since Covid-19 that the RBI has passed on three consecutive rate cuts, beginning February 2020.
Malhotra, however, retained the GDP forecast for the current fiscal at 6.5 per cent. The inflation projection was lowered to 3.7 per cent from the earlier estimate of 4 per cent, supported by expectations of a good monsoon.
The MPC felt that the front-loading of the rate cuts would help growth, he added.
The Rate-setting panel changed the stance to neutral from 'accommodative'.
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Ruckus outside counting centre in Mamata's constituency, TMC claims entry of car with BJP flag
Kolkata (PTI): The counting centre at West Bengal Chief Minister Mamata Banerjee's Bhabanipur assembly constituency witnessed a ruckus a day ahead of the counting of votes, with TMC workers alleging two cars bearing the BJP's flag were allowed entry to the compound where EVMs are kept.
The incident comes close on the heels of a four-hour-long sit-in by Banerjee in front of the same counting centre at the Sakhawat Memorial Girls School on Thursday night, alleging unauthorised entry of persons into the strongroom.
With the polling now over, the wrangling for power in West Bengal has turned into a battle of nerves between the incumbent TMC and the BJP. Workers and leaders of both parties have been keeping a steely gaze on the security of strongrooms across the state where the electoral fate of the candidates is sealed.
Despite expressing her confidence in a "landslide victory", Banerjee has repeatedly aired her apprehensions of "counting malpractice and EVM tampering ahead of the day of results".
On Sunday morning, TMC workers camping 100 metres from the counting centre alleged that two cars with BJP flags entered the premises and went near the strongroom.
"The CAPF personnel at the spot are not allowing any vehicle or person to enter the premises of the counting centre without valid identity proof. Then how come this car, which we have not seen in the past few days, was allowed entry? Once we protested, the central forces asked us to move 100 metres away," a TMC activist said.
The TMC claimed that while the police personnel posted there promised the vehicle would be removed from the spot, it remained there for some time.
A senior Election Commission official said the car was passing by the Harish Mukherjee Road, and after checking by security forces and police, it was allowed to leave as nothing objectionable was found in it.
On Thursday night, two counting centres, including one at Sakhawat Memorial Girls School in the city, witnessed high drama after TMC leaders alleged a lack of transparency and possible malpractice at the strongrooms housing sealed EVMs of the assembly polls, which concluded on April 29.
TMC leaders and candidates, Sashi Panja and Kunal Ghosh, held a sit-in outside the Khudiram Anushilan Kendra counting centre on Thursday evening, alleging unauthorised activities inside the strongroom amid the absence of TMC agents
In Howrah, TMC protested renovation work by the public works department at a place adjacent to the strongroom, and the EC stopped the work temporarily.
On Saturday, the ruling party filed a complaint with the poll panel, alleging unauthorised sorting of postal ballot covers at the EVM strongroom in Khudiram Anushilan Kendra.
Similar scenes were witnessed on Saturday outside the strongrooms at Asansol College in Paschim Bardhaman and the Barasat Government College in North 24 Parganas districts, where TMC workers held protests, alleging that CCTV cameras were switched off for several minutes.
The EC turned down all allegations, saying the surveillance cameras were working in an uninterrupted manner.
BJP spokesperson Sajal Ghosh told reporters that the people of Bengal were finding it "hilarious" that the TMC, "which used to win elections through unfair means and strongarm tactics" were now coming up with all sorts of "frivolous charges".
"Are they scared of losing?" he posed.
