reserve Bank of India (RBI) has cut the repo rate for the third consecutive time today. This time the RBI has reduced the repo rate by 50 basis points i.e. 0.50 percent. Reserve Bank Governor Sanjay Malhotra on Friday announced a reduction of 0.50 percent in the repo rate. After this latest decision today, the repo rate has now come down from 6.00 percent to 5.50 percent.
When was the repo rate reduced before
Today was the last day of the Reserve Bank’s Monetary Policy Committee (MPC) meeting, which started on Wednesday, June 4. It was decided to reduce the repo rate in this important meeting led by Reserve Bank of India Governor Sanjay Malhotra. Let us tell you that all the experts had estimated a reduction of 0.25 percent in the repo rate. RBI has cut the repo rate 3 times this year. The RBI had earlier reduced the repo rate by 0.25 percent on February 7 to reduce it from 6.50 percent to 6.25 percent. Subsequently, the Reserve Bank had also reduced the repo rate by 0.25 percent on 9 April, reducing the repo rate from 6.25 percent to 6.00 percent.
Repo rate cut in February 2025 after 5 years
Let us tell you that in February 2025, the repo rate was reduced for the first time in a long span of about 5 years. Prior to February 2025, RBI cut the repo rate in May 2020. The Reserve Bank of India had cut 0.40 percent (40 basis points) in the repo rate to speed up the country’s economy during Kovid at that time. The RBI raised the repo rate to 6.5 percent in June 2023. After June 2023, there was any change in the repo rate for the first time in February 2025.
Know what will be the benefit of common people
This decision of RBI will provide great relief to crores of common people of the country. With the repo rate reduction, they will now get home loan, car loan, personal loans at comparatively affordable interest rates. Due to cheap loan, people’s EMIs will also decrease and they will now be able to save more. Not only this, the common people will be able to meet their other needs with the savings in EMI or spend more for other things. Let us tell you that the country’s economy is strengthened by increasing demand and consumption.
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