Kochi: In a great relief to borrowers, the Reserve Bank of India (RBI) reduced the repo rates by 0.25 per cent from 0.50 percent on Friday, media reports said.
This was announced during publishing of sixth and the last bi-monthly monetary credit policy in the Financial Year 2025 on Friday.
The reduction of interest will lead to fall in vehicle, home, education, agriculture, gold and personal loans.
This was decided at the meeting of the Monetary Policy Committee (MPC) headed by the new RBI Governor Sanjay Malhotra from February 5 to 7.
The RBI’s MPC decided to reduce the benchmark repo rate by 25 basis points (bps) to 6.25% from 6.50%, first reduction in repo rate in nearly five years.
Repo rate is the interest rate at which the RBI lends money to commercial banks.
Photo Credit: Facebook
