In a key monetary policy move, the Reserve Bank of India (RBI) has once again cut the repo rate by 0.25%, marking the second consecutive reduction. With this revision, the new repo rate stands lower, signaling the central bank’s continued efforts to support economic growth while balancing inflation concerns.
RBI Governor Sanjay Malhotra announced the decision at the conclusion of the Monetary Policy Committee (MPC) meeting. He stated that the MPC voted in majority to lower the rate, considering prevailing global headwinds and domestic economic conditions.
The reduction is expected to ease borrowing costs for consumers and businesses, potentially leading to increased investments and consumption. Malhotra emphasized that while inflation has shown signs of moderation, the RBI remains vigilant and data-driven in its approach.
This move aligns with the RBI’s strategy of maintaining financial stability and supporting the government’s push for sustained economic momentum, especially in the post-pandemic recovery phase.
Banking and financial institutions are expected to respond with revisions to lending and deposit rates, which could soon bring relief to home, auto, and personal loan borrowers.
