RBI Repo Rate: Home, car and corporate loan EMI expected to fall increased, repo rate cut by 25 basis points
New Delhi| The Reserve Bank of India (RBI) has announced repo rate cut. The Monetary Policy Committee of RBI has unanimously decided to cut the repo rate by 0.25 percent with immediate effect. Members of the Monetary Policy Committee (MPC) voted to reduce the policy repo rate from 25 basis points to 6% with immediate effect, RBI Governor Sanjay Malhotra said During this, the Governor also pointed towards new challenges for global development.
The RBI on Wednesday announced a 25 basis point cut in the key interest rate for the second consecutive time. This decision of the Central Bank has increased the hope of supporting the economy affected by mutual tariffs imposed by America. After the cut in interest rates, the key policy rate i.e. repo rate came down to 6 percent. The move brought relief to home, auto and corporate borrowers.
In its previous policy in February, RBI had reduced the repo rate by 25 basis points to 6.25 per cent. This rate came after the previous rate cut in May 2020. The last revision of rates was in February 2023. When the policy rate was raised from 25 basis points to 6.5 per cent.
What is repo rate?
Repo rate is the rate at which RBI lends to banks. Banks give loans to customers through this loan. Lower repo rate means that many types of loans from banks, like home loans, car people, will now become cheaper. However, when and how much the banks will cut the EMI depends on them. The Madrik Niti Samiti of the Reserve Bank of India takes a decision on reducing, increasing or keeping the repo rate stable in its three-day meeting held every two months.
GDP growth projections cut after US tariff shock
RBI Governor Sanjay Malhotra said that the Monetary Policy Committee (MPC) has unanimously decided to reduce the policy rate from 25 basis points to 6.25 per cent. Due to global uncertainties, RBI has reduced the GDP growth forecast from 6.7 percent to 6.5 percent. Last week, US President Donald Trump announced the imposition of a hefty reciprocal duty of 26 percent on Indian imports, effective April 9. The RBI Governor has projected the real GDP growth rate to be 6.5% in fiscal year 2026. The RBI Governor said that growth projections have been reduced by 20 basis points due to policy and trade uncertainties.
The Reserve Bank of India (RBI) has announced repo rate cut. The Monetary Policy Committee of RBI has unanimously decided to cut the repo rate by 0.25 percent with immediate effect. Members of the Monetary Policy Committee (MPC) voted to reduce the policy repo rate from 25 basis points to 6% with immediate effect, RBI Governor Sanjay Malhotra said During this, the Governor also pointed towards new challenges for global development.
The RBI on Wednesday announced a 25 basis point cut in the key interest rate for the second consecutive time. This decision of the Central Bank has increased the hope of supporting the economy affected by mutual tariffs imposed by America. After the cut in interest rates, the key policy rate i.e. repo rate came down to 6 percent. The move brought relief to home, auto and corporate borrowers.
In its previous policy in February, RBI had reduced the repo rate by 25 basis points to 6.25 per cent. This rate came after the previous rate cut in May 2020. The last revision of rates was in February 2023. When the policy rate was raised from 25 basis points to 6.5 per cent.
What is repo rate?
Repo rate is the rate at which RBI lends to banks. Banks give loans to customers through this loan. Lower repo rate means that many types of loans from banks, like home loans, car people, will now become cheaper. However, when and how much the banks will cut the EMI depends on them. The Madrik Niti Samiti of the Reserve Bank of India takes a decision on reducing, increasing or keeping the repo rate stable in its three-day meeting held every two months.
GDP growth projections cut after US tariff shock
RBI Governor Sanjay Malhotra said that the Monetary Policy Committee (MPC) has unanimously decided to reduce the policy rate from 25 basis points to 6.25 per cent. Due to global uncertainties, RBI has reduced the GDP growth forecast from 6.7 percent to 6.5 percent. Last week, US President Donald Trump announced the imposition of a hefty reciprocal duty of 26 percent on Indian imports, effective April 9. The RBI Governor has projected the real GDP growth rate to be 6.5% in fiscal year 2026. The RBI Governor said that growth projections have been reduced by 20 basis points due to policy and trade uncertainties.
GDP growth projections for fiscal year 2025-26
6.5% in the first quarter
6.7% in the second quarter
6.6% in the third quarter
6.3% in the fourth quarter
Inflation rate may remain up to 4% in the financial year 2025-26
RBI Governor Sanjay Malhotra said food inflation is entering a decisively positive range. Inflation is projected to be 4% for fiscal year 2025-26. Inflation is estimated to be 4.2% in February.
Quarterly estimates for fiscal year 26
First quarter 3.6%
Second quarter 3.9%
Third quarter 3.8%
Fourth quarter 4.4%
