📉 Rate Cut Announced
The Reserve Bank of India lowered the repo rate by 25 basis points to 5.25%, aiming to support economic growth as inflation continues to cool.
🎯 Policy Stance
The RBI maintained a neutral stance, giving itself flexibility for future rate decisions.
💧 Liquidity Support
Additional steps, such as liquidity-boosting operations, were introduced to make borrowing easier throughout the system.
📊 Why this move?
- India’s economic growth remains solid, creating room to ease financial conditions.
- Inflation has softened, reducing the need for restrictive rates.
🏠 What changes for consumers?
- Loan EMIs may fall, especially for borrowers on floating rates — home and auto loans are likely to become cheaper.
- Banks may adjust lending and deposit rates — which can lower FD returns over time.
