New Delhi. The Reserve Bank of India has once again cut the repo rate. After the meeting of the monetary committee, RBI Governor Sanjay Malhotra announced to reduce the repo rate by 50 basis points (0.50 percent). With this, the repo rate has now come down from 6 percent to 5.5 percent. The repo rate has been cut for a third time in the last five months. In February this year, the rating rate was reduced by 0.25 percent in February and after that during the monetary policy review in April, the repo rate was announced by 0.25 percent.
#Watch RBI Governor Sanjay Malhotra Says, “… the mpc deceded to reduce the policy rate under the liquidity adjustment facility by 50 basis points to 5.5%. 5.5%. The Standing Deposit Facility (STF) Rate Shall Stand Adjusted to… pic.twitter.com/siuulbmcrg
– ANI (@ani) June 6, 2025
People taking loans will benefit from this continuous deduction in the repo rate. This will reduce the amount of home loan, car loan installment. Due to this, home loan rates which are currently running around 8 per cent, will once again come down to 7.5 per cent. Let us tell you that the Reserve Bank of India provides cash to other banks of the country, it is called repo rate. Now when banks will get cash at low interest rate, obviously the interest of customers’ loan will also be low.
Giving information about the reducing repo rate, RBI Governor Sanjay Malhotra said that the level of inflation in the country remains below 4 percent continuously. Along with this, GDP growth is also in better position than before. In view of this, a decision was taken to reduce the repo rate in the meeting of the Monetary Committee. RBI has retained the GDP growth estimate for the financial year 2025-26 at 6.5 percent. With this, the estimate of retail inflation in the country has been reduced and it has been reduced to 3.7.
