RBI Cuts Repo Rate by 0.25%, Governor Malhotra Announces
Repo rate reduced by 0.25% to 6.25%
Mumbai, 07 February : The Reserve Bank of India (RBI) has reduced the policy rate, the repo rate, by 0.25%. After this reduction, the repo rate has decreased from 6.5% to 6.25%. RBI Governor Sanjay Malhotra made this announcement today. This cut in the repo rate will make loans cheaper and reduce EMIs.
Sanjay Malhotra shared the decision taken after a three-day meeting of the Monetary Policy Committee with the press. He stated that the six-member committee decided by consensus to reduce the repo rate by 0.25% to 6.25%. Governor Sanjay Malhotra also mentioned that RBI has projected a Gross Domestic Product (GDP) growth rate of 6.7% for the next fiscal year 2025-26, while maintaining the growth rate projection for the current fiscal year at 6.4%.
Sanjay Malhotra further mentioned that the retail inflation forecast for the next fiscal year 2025-26 is 4.2%, while for the current fiscal year 2024-25, it is expected to be 4.8%. It is noteworthy that RBI had kept the repo rate unchanged at 6.5% since February 2023.
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