RBI Cuts Repo Rate to 6.25% After Five Years
RBI reduces repo rate by 25 bps, the first cut in five years, aiming to boost economic growth.
MUMBAI:
RBI Lowers Repo Rate to 6.25%, Aims to Boost Economic Growth
The Reserve Bank of India (RBI) has reduced the repo rate by 25 basis points to 6.25%, marking its first rate cut in five years. This move aims to stimulate economic growth by making borrowing more affordable for businesses and individuals. Lower interest rates on home loans, auto loans, and business loans could drive increased spending and investment.
Financial markets are expected to react positively, as reduced borrowing costs typically encourage higher corporate investments. The decision also signals that inflation remains under control, allowing the RBI to focus on economic expansion. Analysts predict this could lead to greater liquidity in the banking system, benefiting consumers and industries alike.
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