By Admin 
Rbi mpc meeting: The Reserve Bank of India (RBI) has given great relief to the general public of the country by reducing the repo rate. On Friday morning, Governor of Reserve Bank of India Sanjay Malhotra announced a 50 -basis point cut. After this deduction, the repo rate has now reduced from 6 percent to 5.5 percent. The verdict was pronounced after the end of the three -day meeting of the Monetary Policy Committee (MPC) in Mumbai.
Third talk cut in a year
This is the third time in the year 2025 when the repo rate has been cut. In February and April, 25 basis points were cut. Due to this, there are indications of the Reserve Bank’s adoption of more liberal monetary policy to support the increasing confidence and economic development of the Reserve Bank over the decrease in inflation in the country.
Announcing the repo rate reduction today, Governor Sanjay Malhotra said that in view of the current economic situation of the country, the committee has changed the attitude of the policy from ‘Accommodative’ to ‘Neutral’. This means that now no decision will be taken immediately to reduce or increase the repo rate in the next meeting. In view of the current situation, a decision will be taken regarding the repo rate in the coming time. However, the rate cut now was necessary to support economic growth under current circumstances.
What will be the effect on your pocket due to decrease in repo rate?
Along with the decision to cut the repo rate, Governor Sanjay Malhotra has now kept the Standing Deposit Facility (SDF) on 5.25 percent, while marginal standing facility (MSF) and the bank rate has changed it to 5.75 %. Now the biggest question comes that what are the benefits of the common man to get due to reduced repo rate? Let’s take a look at it.
- The biggest advantage with the reduction of repo rate is that it will reduce the cost of lending. That is, banks will now reduce home loan, auto loan, personal loan, retail loan. This will reduce your monthly EMI, then it will help you to do more savings.
- Now if someone is thinking about taking a new loan, then he will also get it at a low interest rate. That is, whether it is education loan or car loan, now you will get it cheaply than before.
- Due to reduced repo rate, interest on SME and Business Loans will also reduce. As a result, it will be easy to run a business. If more and more people get employment, then economic activities will also increase. Overall, the economy of the country will be strong.
- It is obvious that if there will be some savings from EMI, then the income will increase on other things. People will shop or invest more. This will strengthen business and will also boost the country’s economy.
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