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flag RBI cuts interest rates by 0.5% to spur economic growth as inflation falls to 3.2%.

flag Inflation in India has dropped to 3.2% year-over-year, leading the Reserve Bank of India (RBI) to cut the benchmark repo rate by 50 basis points to 5.50%, aiming to boost economic growth. flag The RBI projects CPI inflation of 3.7% for the fiscal year 2025-26, supported by record wheat production and potentially above-normal monsoon rains. flag Lower crude oil prices also reduce the risk of imported inflation. flag The RBI's move is expected to lower lending rates and stimulate demand, though coordinated fiscal and structural reforms are also seen as crucial for sustained economic recovery.

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