In a major move, the Reserve Bank of India (RBI) has reduced the repo rate by 50 basis points (0.50%), bringing it down from 6.00% to 5.50%, effective from June 6, 2025. This is the largest rate cut since March 2020 and marks the third consecutive cut this year. This decision is expected to benefit borrowers as banks are likely to reduce interest rates on home loans, personal loans, and business loans, making EMIs more affordable.