New Delhi: Housing and vehicle loans are likely to get cheaper with the Reserve Bank of India (RBI) slashing its repo rate by 25 basis points from 5.5% to 5.25% on Friday. The cut was announced by the central bank’s governor Sanjay Malhotra. This was done to bolster growth amid concerns regarding the rupee’s slump.

The decision was taken unanimously after a three-day meeting of the RBI’s Monetary Policy Committee (MPC). This meeting is held every two months to decide the central bank’s strategy. The MPC weighed record low inflation against a falling rupee that hit its lowest yesterday. ADVERTISEMENT

In June this year, the MPC had reduced the key lending rate from 6% to 5.5% in view of a softening inflation. A cut in the repo rate is expected to translate into cheaper housing and vehicle

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