Homema Loan EMI, RBI will reduce the repo rate for the second consecutive time by cutting 25 basis points

The Reserve Bank of India (RBI) on Wednesday reduced the most important interest rate supplier by 0.25 percent to 6 percent for the second consecutive time to strengthen the economy. RBI Governor Sanjay Malhotra said: “The 6 -member monetary policy committee unanimously made this decision to lower prices.” Let us tell you that three members of the Monetary Policy Committee of the Central Bank are, while three are outside members. Malhotra said the RBI changed its policy of “neutral” to “adapt”. This means that the RBI, if necessary, can further reduce the policy rate in the future. What is the repo rate? The understanding of repo is the interest rate that commercial banks borrow from the central bank to meet their immediate needs. RBI uses this rate to control inflation. Repo rates reduction means that EMI is expected to decline different loans, including home and vehicle loans. After the increase in tariff by Trump, the decision was reduced by the RBI after the decision on Indian products exported to the US was levied. US rates have raised uncertainties and some economists have a decline of 0.2 to 0.4 percent in gross domestic product growth in the current financial year from April 1. The forecast of economic growth has been reduced, reducing the RBI economic growth for the financial year 2025-26 from 6.7 percent to 6.5 percent. In addition, inflation estimates were also reduced from 4.2 percent to 4 percent. As a result, the estimate of retail inflation was in line with the RBI target. The repo rate was also reduced in February. In February this year, in the monetary policy review, the RBI reduced the repo rate from 0.25 percent to 6.25 percent. It was the first cut after May 2020 and the first improvement after two and a half years. Share this story -tags