New Delhi, June 6 - This is a big relief news for those who take loans or pay EMI on loans. The Reserve Bank of India on Friday cut the repo rate more than the market expected. After the two-day meeting of the RBI's Monetary Policy Committee that began on June 4, Governor Sanjay Malhotra announced a big cut of 50 basis points i.e. 0.50 percent. After this, the repo rate has now come down to 5.5 percent.
This is the third consecutive cut in the repo rate by the RBI in the last six months. Earlier this year, a cut of 25 basis points was made in February and then 25 basis points in April after which the repo rate came down to 6 percent.
After this decision of the central bank, all types of loans including car-home will become cheaper.
RBI Governor Sanjay Malhotra, while cutting the repo rate, said that this move will provide ample opportunities to investors within the country. The Indian economy will strengthen amidst the slow pace of global growth. Also, domestic demand will strengthen further.
He said that during the monetary policy meeting, the SDF rate has been reduced from 5.75 percent to 5.25 percent. Along with this, the MSF rate has also been reduced from 6.25 percent to 5.75 percent. Along with this, the RBI Governor has also reduced the cash reserve ratio i.e. CRR by 100 basis points from four percent to 3 percent.