RBI Repo Rate: The Reserve Bank of India has made a big announcement after the Monetary Policy Committee (MPC) meeting and has reduced the repo rate by 25 basis points (BPS). Governor Sanjay Malhotra said on Friday that the new repo rate will now 5.25% has happened, whereas before it 5.5% Was. As soon as this change in repo rate is implemented, there will be a reduction in EMI of home loan, auto loan and personal loan, which will provide relief to the consumers.
The MPC met between December 3 and 5, in which a detailed assessment of the current economic situation, inflation trends and growth rates was made. All the members attending the meeting voted in favor of cutting interest rates. The aim of the decline in RBI Repo Rate is to accelerate economic activities and increase consumer spending, so that the growth rate can be strengthened in the coming months.
Repo rate is the rate at which RBI provides short-term loans to the banks of the country. Reduction in rates reduces the cost of borrowing for banks, which directly impacts consumers. Especially the reduction in interest rates on home and auto loans will also give a boost to the real estate and automobile sectors.
RBI Repo Rate This reduction is an indication of the soft stance of monetary policy. Experts believe that if inflation remains controlled, more relief may be provided from time to time. At present, consumers are being advised to get information about the new EMI schedule from their bank and take advantage of the change in interest rates.