Home, auto and other loans are likely to cost less as the Reserve Bank of India (RBI) Friday cut key benchmark interest rate for the first time in six months and vowed to provide Rs 1 lakh crore liquidity boost to banking sector to support a “goldilocks” economy in the face of high US tariffs.

The six-member monetary policy committee, led by RBI Governor Sanjay Malhotra, voted unanimously to lower the repurchase or repo rate by 25 basis points to 5.25 per cent and retained a neutral stance, which gave room for further rate cuts.

The step is being seen as lending support to the economy that has been hit hard by the steep 50 per cent tariff US President Donald Trump slapped on Indian goods.

The move had already led to a dip in export and widening of trade deficit as well as pushed rupee t

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