New Delhi. The Reserve Bank of India has decided to reduce the repo rate by 25 basis points. RBI Governor Sanjay Malhotra made this announcement today while giving information about the decision taken in the Monetary Policy Committee meeting. After 0.25 percent reduction in repo rate, it has now come down to 5.25 percent. After this deduction, EMI of home, car and personal loan will also reduce. Also, banks can announce loan facilities at low interest rates. The repo rate cut will come into effect with immediate effect.
RBI has reduced the repo rate for the fourth time this year. Earlier, repo rate has been cut in February, April and June. First of all, the repo rate was reduced by 0.25 percent in February and after that, a 0.25 percent reduction in the repo rate was also announced in April. Then in June, repo rate reduction of 50 basis points i.e. 0.50 percent was announced, after which the repo rate came down from 6 percent to 5.5 percent and now due to further reduction of 0.25 percent, it has reached 5.25 percent.
It is noteworthy that repo rate is the interest rate at which the Reserve Bank of India provides cash to other banks of the country. With the cut in repo rate, the Reserve Bank of India revised the estimate of Gross Domestic Product (GDP) growth rate for the current financial year 2026 to 7.3 percent. Earlier this estimate was 6.8 percent. Whereas the inflation estimate for the third quarter has been increased from earlier 6.4 percent to 7 percent and similarly for the fourth quarter it has been increased from 6.2 percent to 6.5 percent.