RBI cuts repo rate to 6%, home loans likely to get cheaper
PTC News Desk: The Reserve Bank of India (RBI) on Wednesday cut repo rate by 25 basis points, bringing it down to 6 %. The decision was announced after the central bank’s Monetary Policy Committee (MPC), led by Governor Sanjay Malhotra, concluded its three-day meeting that began on April 7.
This will reduce borrowing costs for banks and enable them to lend money to individual customers at lower rates, reducing EMIs for loans.
"After a detailed assessment of the evolving macroeconomic and financial conditions and outlook, the MPC voted unanimously to reduce the policy repo rate by 25 basis points to 6% with immediate effect," said Sanjay Malhotra.
The Governor highlighted that this growth projection comes after a strong performance of 9.2 per cent growth recorded in the previous financial year, 2024-25, as per figures released by the Ministry of Statistics and Programme Implementation (MOSPI).
He said "The real GDP as you are all aware, this year, as per the MOSPI figures, is expected to grow at 6.5 per cent. This is on top of a 9.2 per cent growth rate observed in the previous year, which is 2024-2025".
- With inputs from agencies
