RBI reduces repo rate by 25 points, loans may get cheaper
The Reserve Bank of reduced the repo rate — the interest rate at which it lends money to banks — by a marginal 25 basis points. The new repo rate now stands at 6.25 from the earlier 6.50.
The implication of the RBI reducing the repo rate is that your EMIs are likely to become cheaper (only if you got your loan on a floating interest rate).
Among the other decisions taken by the RBI’s Monetary Policy Committee were: Adjusting the reverse repo rate (the interest rate at which banks lend money to the RBI) to 6.0 per cent, and the marginal standing facility (MSF) rate and the bank rate to 6.5 per cent.
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