The Reserve Bank of India (RBI) has cut the repo rate for the third consecutive time today. This time the RBI has cut the repo rate by 50 basis points i.e. 0.50 percent. Reserve Bank Governor Sanjay Malhotra announced a 0.50 percent cut in the repo rate on Friday. After today’s latest decision, the repo rate has now come down from 6.00 percent to 5.50 percent.
When was the repo rate reduced before this
Today was the last day of the meeting of the Reserve Bank’s Monetary Policy Committee (MPC) which began on Wednesday, June 4. In this important meeting held under the leadership of Reserve Bank of India Governor Sanjay Malhotra, it was decided to reduce the repo rate. Let us tell you that many experts had predicted a 0.25 percent cut in the repo rate. RBI has cut the repo rate 3 times in a row this year. Earlier on February 7, RBI had cut the repo rate by 0.25 percent, reducing it from 6.50 percent to 6.25 percent. After this, the Reserve Bank also cut the repo rate by 0.25 percent on April 9, due to which the repo rate was reduced from 6.25 percent to 6.00 percent.
After 5 years, the repo rate was cut in February 2025
Let us tell you that in February 2025, the repo rate was reduced for the first time in a long period of about 5 years. Before February 2025, RBI had cut the repo rate in May 2020. At that time, the Reserve Bank of India had cut the repo rate by 0.40 percent (40 basis points) to boost the country’s economy during Covid. RBI had increased the repo rate to 6.5 percent in June 2023. After June 2023, there was any change in the repo rate for the first time in February 2025.
Know what will be the benefit to common people
This decision of RBI will provide great relief to crores of common people of the country. Due to reduction in repo rate, they will now get home loans, car loans, personal loans at comparatively cheaper interest rates. Due to cheaper loans, people’s EMIs will also decrease and they will now be able to save more. Not only this, common people will be able to fulfill their other needs or spend more on other things with the savings in EMI. Let us tell you that the country’s economy becomes stronger due to increased demand and consumption.
