Relief for home loan borrowers: RBI cuts repo rate 50 basis points, EMI will also decrease

New Delhi (The Uttam Hindu): Reserve Bank of India (RBI) has cut 50 basis points under the monetary policy review. After this repo rate came down from 6% to 5.50%. This is considered more relief than the market expected. RBI Governor Sanjay Malhotra made this announcement.

This is the third consecutive time that the RBI has cut policy rates. Earlier, the repo rate was reduced by 25-25 basis points in the review meetings of February and April. This is the first major sequential reduction in the repo rate in the last five years.

A total of 100 basis points have been cut so far this year, which can lead to a significant reduction in interest rates on other loans including home loans. Experts believe that the reduction in interest rates will encourage housing and vehicle sales and increase liquidity in the economy, which can boost overall economic growth.