The Reserve Bank of India (RBI) has reduced the repo rate from 6.5% to 6.25%, cutting 25 basis points to boost economic growth. This is the first rate cut in 5 years and will lead to lower EMIs on home, car, and personal loans.
Highlights:
First repo rate cut in 5 years to support economic growth.
Loan EMIs will decrease, benefiting borrowers.
Banks may reduce interest rates on loans.
Expected boost in real estate, auto, and small businesses.
Experts say this move will support the middle class, but deposit interest rates may fall. RBI will monitor inflation before deciding on further cuts.
