Repo rate cut by 0.25%..!? Interest on home loans reduced..!?

The repo rate is the interest rate charged by the bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW">reserve bank of india on loans provided to banks. The Monetary Policy Committee of the bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW">reserve bank of india meets once every two months and makes decisions regarding the repo rate. In this context, the first meeting of the Monetary Policy Committee meeting headed by bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW">reserve bank of india governor Sanjay Malhotra was held on february 5. At that time, the repo rate for short-term loans of banks was reduced by 25 basis points to 6.25%. The repo rate has been reduced after 5 years. Earlier, the bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW">reserve bank of india had left the repo rate unchanged 6 times from april to december 2023 and continued it at the previous level of 6.5 percent.
The recently presented Economic survey for 2024-25 stated that India's economic growth will be between 6.3% and 6.8% in the financial year 2025-26. It was also said that the country's inflation is under control. It was reported that the repo rate has been reduced to accelerate industrial growth as inflation is under control. In this context, the bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW">reserve bank of india has announced its first monetary policy decision for the financial year 2026 amid increasing global tensions following the US rate hike. The Reserve bank of India's Monetary Policy Committee meeting began on the 7th under the chairmanship of governor Sanjay Malhotra. The policy decisions were announced today after the discussions in this regard concluded on the 7th.
Accordingly, the repo rate has been reduced by another 0.25 basis points amid signs of slowing inflation and slowing economic growth. That is, the repo rate for short-term loans of banks has been reduced by 0.25 basis points to 6%. This will reduce interest rates on housing and auto loans. The RBI has said that steps have been taken to stimulate the economy. Based on this, the central bank is likely to take steps to increase demand and increase investment. After the last 5 years, the repo rate has been reduced by 0.25 basis points in february, and now it has been reduced by 0.25 points again.