India's Reserve Bank of India (RBI) unexpectedly slashed its benchmark interest rate to 5.5%, its lowest since August 2022, marking the third consecutive cut. This decision, below analyst predictions, follows better-than-expected GDP growth of 7.4% in Q4 and significantly softened inflation at 3.16% in April. While the RBI maintains a 6.5% full-year GDP forecast, Governor Sanjay Malhotra stated the economy shows 'strength, stability, and opportunity.' The RBI shifted its monetary policy stance to 'neutral' from 'accommodative', citing limited room for further rate cuts.

Prepared by Christopher Adams and reviewed by editorial team.