New Delhi: The Reserve Bank of India has taken a decision that has provided significant relief to banks and borrowers. The RBI has once again cut the repo rate, leading to widespread enthusiasm. The RBI decided to reduce the repo rate by 25 basis points at its monetary policy meeting.
The repo rate has now fallen to a total of 5.25%, down from 5.50% previously. Following this decision, banks may be able to offer loans at lower interest rates. The possibility of a repo rate cut had been speculated for some time. The RBI has turned those expectations into reality. Following the meeting, RBI Governor Sanjay Malhotra made significant remarks. Read what he said below.
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What did the RBI Governor say?
Reserve Bank of India Governor Sanjay Malhotra stated that the past month has been very challenging for us. However, the coming months are expected to be good, from GDP to inflation. He stated that our inflation forecast for the full year is 2%.
Furthermore, real GDP growth in the second quarter was 8.2%. GDP growth is projected to be 8% for the last quarter of the financial year. Meanwhile, the MPC members unanimously cut the repo rate by 25 basis points. The CRR has been kept at 3%, while the SDF rate has been kept at 5.25%, the MSF rate at 5.75%, and the bank rate at 5.75%. This is considered a significant decision by the RBI.
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Repo Rate Cut for the Fourth Consecutive Time
The Reserve Bank of India has decided to cut the repo rate for the fourth consecutive time. In February, the RBI cut the repo rate by 25 basis points. In April, the repo rate was further reduced by 25 basis points.
Earlier, in June, the biggest cut of this year was made by 50 basis points. Now, another 25 basis point rate cut has brought joy to loan holders. This will benefit both financial banks and borrowers. It is believed that banks may soon decide to reduce loan interest rates.
