RBI cuts repo rate by 25 bps; Relief for homebuyers, EMIs to come down

The repo rate cut, besides relief for homebuyers and other borrowers, will boost economic growth. Read further on Dynamite News:

Mumbai: The Reserve Bank of India (RBI) on Wednesday decided to cut policy repo rate by 25 basis points to 6 per cent with immediate effect.

RBI Governor Sanjay Malhotra said, "After a detailed assessment of the evolving macroeconomic and financial conditions and outlook, the Monetary Policy Committee (MPC) voted unanimously to reduce the policy repo rate by 25 basis points to 6 per cent with immediate effect.” 

The repo rate cut, besides relief for homebuyers and other borrowers, will boost economic growth.

Malhotra said that the MPC noted that the inflation is currently below the target. "It is supported by a sharp fall in food inflation. Moreover, there is a decisive improvement in the inflation outlook. As per projections, there is now a greater confidence of a durable alignment of headline inflation with the target of 4 per cent over a 12-month horizon," he added.

The RBI Governor said that the current financial year has begun on an anxious note for the global economy.

"The global economic outlook is fast changing. The recent trade tariff related measures have exacerbated uncertainties clouding the economic outlook across regions, posing new headwinds for global growth and inflation," Malhotra said.