RBI Repo Rate Cut: The Reserve Bank of India (RBI) announced a reduction in the repo rate for the first time in nearly five years on Friday. This announcement may lead to lower interest rates on bank loans, potentially easing the burden of home loan EMIs. The RBI reduced the repo rate by 0.25 percent to 6.25 percent. The central bank made this decision to boost the country’s economic growth.

Previously, in May 2020, during the COVID-19 pandemic, the RBI had cut the repo rate by 0.40 percent to 4 percent. Later, in May 2022, to address the risks arising from the Russia-Ukraine war, the RBI started increasing rates, and this trend continued until February 2023, when it stabilized at 6.50 percent for about two years.

RBI Governor Sanjay Malhotra, while sharing the decision made in the three-day meeting of the Monetary Policy Committee (MPC), stated that the six-member committee reached a consensus to reduce the repo rate by 0.25 percent to 6.25 percent.