RBI Repo Rate EMI Impact: In a significant move aimed at boosting economic growth and supporting borrowers, the Reserve Bank of India (RBI) has cut the repo rate by 25 basis points (bps). This brings the repo rate down to 5.25%, the lowest in several years, signaling an accommodative stance by the central bank.

The repo rate is the interest rate at which the RBI lends money to commercial banks in India. It is a critical tool of monetary policy that influences borrowing costs in the economy. When the repo rate is reduced, banks typically lower their lending rates, making loans cheaper for borrowers.

The MPC in its meeting decided to continue ‘Neutral’ stance.

Impact on Home Loan Interest Rates

With a 25 bps reduction in the repo rate, home loan interest rates are likely to come down as

See Full Page