In a move that surpassed expectations, the Reserve Bank of India on Friday cut the repo rate by 50 basis points to 5.5%, offering relief to borrowers with likely lower EMIs. The cut - double the widely anticipated 25 basis points - takes the total reduction since February to 100 basis points.

India’s central bank delivered a larger-than-expected rate cut, as sound economic conditions at home and tariff risks abroad make a case for more policy easing.