New Delhi:
The Reserve Bank of India (RBI) has given great relief to the common people today. RBI has cut the repo rate by 25 basis points i.e. 0.25%. Now this rate has come down from 6.25% to 6%. This decision was taken after a three -day meeting of the RBI Monetary Policy Committee (MPC). Today was the last day of this meeting and at 10 am Governor Sanjay Malhotra announced the result of this meeting.
RBI Governor Sanjay Malhotra has made important announcements regarding monetary policy. He said that the Monetary Policy Committee (MPC) has unanimously decided to reduce the repo rate by 0.25%. Now the repo rate has increased to 6%, which was 6.25% earlier. The governor said that this time the attitude of monetary policy has also been changed. Earlier it was kept “neutral”, but now it has been “acquired”, so that economic activities can be further boosted.
Indian economy strong, improves growth
He also said that the current financial year has started at a time when uncertainty has remained globally like increasing import duty from the US. RBI is constantly monitoring the situation. At the same time, he assured that the Indian economy is moving towards its goals firmly and growth continues to improve.
What will be the effect on EMI?
The reducing repo rate will directly affect your home loan, personal loan and car loan EMI. The bank will now take a loan from RBI on cheap interest, so that they will also give loans to customers at low interest. This means that now your EMI can be reduced already.
Rate cut for second consecutive time
This is the second consecutive time RBI has cut the repo rate. Earlier in February, there was a reduction of 0.25%, when the repo rate was reduced from 6.5% to 6.25%.
What is a repo rate?
The repo rate is the interest rate on which RBI gives loan to banks. When this rate decreases, banks get cheaper funds, and they can also give cheap loans to their customers.