RBI MPC Meeting: After Budget 2025, RBI has now reduced the repo rate, giving a big relief to the middle class. Due to this, now home and car loans will become cheaper.
RBI MPC Meeting: Reserve Bank of India Governor Sanjay Malhotra today announced a reduction in the repo rate by 25 basis points or 0.25 percent in the monetary committee meeting. It has been reduced from 6.50 percent to 6.25 percent. The Monetary Policy Committee (MPC) of RBI unanimously decided to cut the repo rate by 25 basis points. Let us tell you that in his first MPC meeting as RBI Governor, Sanjay Malhotra has cut the repo rate for the first time in five years.
Earlier, the repo rate was reduced in May 2020. Whereas, in February 2023 it was increased by 25 basis points. After the reduction in repo rate, people are breathing a sigh of relief because the effect of reduction in repo rate is seen in the interest rates. That is, now from home loan to car loan will become cheaper. People are reacting fiercely on this on social media. Let us tell you that in the general budget of the country presented on February 1, the middle class was given relief by giving a big tax exemption, now with the reduction in repo rate, people have once again heaved a sigh of relief.
Why did RBI reduce the repo rate?
The Reserve Bank has cut the repo rate to stimulate economic activity so that spending and investment are promoted. This policy change reflects the central bank’s response to the emerging economic conditions and its commitment to promote growth while curbing rising inflation. During this time, the policy panel has projected GDP growth at the rate of 6.7 percent for the financial year 2025-26 and retail inflation is estimated to be 4.2 percent.
