New Delhi, April 9, 2025: The Reserve Bank of India (RBI) has announced a 25 basis point reduction in the repo rate, bringing it down to 6%. This decision, made during the three-day Monetary Policy Committee (MPC) meeting led by RBI Governor Sanjay Malhotra , marks the second consecutive rate cut since February.
The repo rate, which is the rate at which commercial banks borrow from the RBI, directly impacts borrowing costs across the economy. By reducing this rate, the RBI aims to stimulate economic growth and make loans more affordable for businesses and consumers.
This move reflects the RBI’s ongoing efforts to manage inflation and support economic recovery. It is also the second major decision by Governor Sanjay Malhotra, who took office in December 2024.
The rate cut is expected to benefit various sectors by improving liquidity and fostering investment and spending.
