RBI reduces repo rate to 6 percent
Reserve Bank of India i.e., RBI has reduced the repo rate by 0.25% to 6%. Earlier it was 6.25%. That is, loans may become cheaper in the coming days.
RBI Governor Sanjay Malhotra gave information about the decisions of the first monetary policy committee meeting of RBI in the new financial year today on 9 April at 10 am. This meeting started on 7 April.
In February this year, RBI had cut the repo rate by 0.25%
Earlier, in the last meeting of the financial year 2024-25, RBI had cut the interest rates by 0.25%. In the meeting held in February, the interest rates were reduced from 6.5% to 6.25%. This reduction was done by the Monetary Policy Committee after about 5 years.
What changes will come with the reduction of repo rate?
After the reduction in repo rate, banks can also reduce their interest rates on loans like housing and auto. If interest rates are reduced, housing demand will increase. More people will be able to invest in real estate. This will give a boost to the real estate sector.
What is repo rate, how does it make loans cheaper?
The interest rate at which RBI gives loans to banks is called repo rate. Due to reduction in repo rate, banks will get loans at lower interest. When banks get loans at cheaper rates, they often pass on the benefit to the customers. That is, banks also reduce their interest rates.
