The Reserve Bank of India unexpectedly cut interest rates by 50 basis points and adjusted its monetary policy stance to neutral.

As trade uncertainty casts a shadow over economic growth prospects, the Reserve Bank of India unexpectedly announced a significant rate cut to stimulate the economy. The Reserve Bank of India voted on Friday to cut the benchmark repo rate by 50 basis points to 5.5%. Of the 34 economists surveyed by the media, only one predicted this move. This is the third consecutive rate cut by the Reserve Bank of India. The Reserve Bank of India has shifted its monetary policy stance from accommodative to "neutral." Reserve Bank of India Governor Sanjay Malhotra said in a televised speech that the inflation rate has "fallen" far below the target level, and the short-term outlook gives the Reserve Bank of India confidence that inflation will gradually converge towards the target in the long term.