A 0.5% cut in the repo rate to 6% will certainly spur economic growth and ease inflationary pressures, says RBI. The repo rate cut was a unanimous decision taken at the Monetary Policy Committee (MPC) meeting on April 9, 2025. It will reduce the EMIs of home loans, car loans, and personal loans directly.
What Would It Mean for You?
- Lower EMIs: With the new cuts, banks should pass it on and reduce the monthly installments on your loan.
- Less Costly Loans: Home loans, for that matter, car loans and any other retail loans.
- Positive for the Economy: The purpose of a rate cut is to revive spending and investment in favour of economic recovery.
RBI Governor’s Statements
“The MPC is unanimously decided to support growth, while containing inflation by cutting the repo rate by 50 basis points, with immediate effect,” stated RBI Governor Sanjay Malhotra. He added that the RBI has shifted its position from ‘neutral’ to ‘accommodative’ to signal the possibility of further rate cuts if needed.
What is Repo Rate?
The repo rate is the rate at which the RBI lends money to commercial banks. A low repo rate means banks get to borrow easy and cheap; hence, the same will naturally cascade down to lower interest charges for consumers.
repo rate, rbi policy, rbi repo rate cut, rbi repo rate, rbi, rbi monetary policy rbi rate cut, repo rate today, rbi governor, rbi policy date, rbi news, rbi policy today, rbi meeting, rbi mpc meeting, rbi mpc, monetary policy, rbi meeting today, rbi news today, mpc meeting, rbi policy time, rbi policy live, repo rate rbi, rbi policy news, repo rate news, rbi monetary policy 2025, repo rate cut, rbi repo rate news, rbi cuts repo rate, rbi rate cut news