New Delhi. The Reserve Bank of India has a second consecutive cut in the repo rate. RBI Governor Sanjay Malhotra said that the Monetry Policy Committee has given its consent to reduce the repo rate. The repo rate has been reduced by 25 basis points i.e. 0.25 percent, thus the repo rate has now increased to 6 percent. This decision of RBI will provide relief to those taking loans as their EMI will decrease. The RBI governor has provided great relief to the common people amid the tariffs imposed on India by the US.
RBI Cut the Repo Rate by 25 Basis Points to 6% to Support the Economy but it has downsides too.
> Inflation May Rise
> Bank Interest on Savings May Fall
> Rupee Could WeakenRepo Rate Cuts Help, but come with risks too.#RBI #MPCMETING #Trumptarifs pic.twitter.com/and6k75RNQ
– Anmol Week (@vachan_milki) April 9, 2025
Earlier, the RBI had announced a reduction of 0.25 per cent in the repo rate after the Monetary Policy Meeting in February 2025. After this cut, the repo rate which was 6.50 percent earlier was reduced to 6.25 percent. If we talk about before that, RBI reduced the repo rate in May 2020. Now about five years of RBI has reduced the repo rate twice in two months. RBI has given relief to millions of people who have taken home loan, car loan or any other loan from banks by reducing the repo rate. After tax -free of income of up to 12 lakh in the Union Budget, the government is constantly taking relief for the people.
What is a repo rate?
The Reserve Bank of India provides loans to all banks in the country. People are given loans by banks only by this loan from RBI. The interest rate fixed by the RBI for giving loans to banks is called repo rate. If the repo rate is low, the bank will also keep the rate of interest low for giving loans.
