Economy, Banking & Business
RBI cuts repo rate by 25 bps to support growth
Summary
The Reserve Bank of India's Monetary Policy Committee voted to cut the repo rate by 25 basis points to 5.75%, citing sustained easing in retail inflation and a need to support economic growth.
Key TakeawayLower repo rates typically translate to cheaper home and auto loans within a few months.
Key Points
- Repo rate cut to 5.75% from 6.00%.
- Sixth rate cut in the current easing cycle.
- CPI inflation has stayed below 4% for three straight months.
- Banks expected to pass on rate cuts to borrowers.
Key Facts
- New Repo Rate
- 5.75%
- Previous Rate
- 6.00%
- CPI Inflation
- 3.8%
- MPC Vote
- 5-1 in favour
Why it matters?
Rate cuts reduce EMIs, encourage borrowing and investment, and are a frequently tested topic in banking and SSC exams.