Reserve Bank of India’s big decision; RBI cuts repo rate by 0.25% 

Newspunjab

9 April 2025

RBI has cut the repo rate by 25 basis points. The repo rate has been cut for the second time in a row. Earlier in February, the repo rate was cut by 25 basis points. This was the first cut in the repo rate in almost five years. With today’s cut, the repo rate has now become 6 percent. The repo rate is the rate at which RBI lends to banks. Due to its cut, the installment of your home loan, personal loan and car loan gets reduced. The decision to cut the repo rate was taken in the meeting of the Monetary Policy Committee of RBI. RBI Governor Sanjay Malhotra informed about the decisions taken in the meeting. This was the first meeting of the RBI’s MPC in the new financial year.

The RBI Governor said that the MPC unanimously voted in favour of the repo rate cut. He said that the new financial year has started with a lot of turbulence. Some fears regarding trade are proving to be true and the global community is worried. The Indian economy has made good progress in terms of price stability and regular growth. The economic outlook in the world is changing rapidly. He said that the current financial year has started with global uncertainty over US tariffs but the RBI is monitoring the situation. The Indian economy is moving forward on track and economic growth continues to improve. He said that the Monetary Policy Committee has decided to change the policy stance from neutral to accommodative.