New Delhi – In a key monetary policy decision, the Reserve Bank of India (RBI) on Thursday announced a 25 basis point cut in the repo rate, bringing it down to 6%. The decision was made at the conclusion of the three-day meeting of the Monetary Policy Committee (MPC), which began on April 7, under the leadership of RBI Governor Sanjay Malhotra.
The reduction in the repo rate—the rate at which the central bank lends money to commercial banks—is expected to ease borrowing costs, encourage lending, and stimulate economic activity amid evolving global and domestic financial conditions.
The move signals the RBI’s accommodative stance to support growth while keeping inflation within manageable levels. Economists and market experts will closely watch how this decision impacts sectors like housing, auto, and MSMEs that are highly sensitive to interest rate changes.
