RBI Slashes Repo Rate to 6 25% | Cheaper Loans & Inflation Outlook.

RBI Slashes Repo Rate to 6 25% | Cheaper Loans & Inflation Outlook. RBI Cuts Repo Rate by 0.25% to Boost Growth The Reserve Bank of India (RBI) has cut the repo rate by 25 basis points (0.25%) to 6.25%, marking the first rate cut in 57 months since May 2020. This move aims to support economic growth while ensuring inflation remains under control. Key Highlights: Stimulating Demand: The rate cut follows the Union Budget 2025-26, which included ₹1 lakh crore in income tax breaks to boost urban consumption. Cheaper Loans: The policy shift is expected to result in lower interest rates on home, car, and other loans, encouraging borrowing and investment. Inflation Target: The RBI aims to keep inflation at 4.4% in the current quarter and 4.2% through 2025-26 while maintaining a balance between growth and price stability. First Cut Since COVID-19: The last repo rate cut was in May 2020, when RBI reduced it to 4% during the pandemic. Since 2022, rates had been increasing to combat inflation. This policy adjustment underscores RBI’s focus on boosting growth while keeping inflation aligned with targets, offering relief to borrowers and stimulating economic activity. 1. "RBI Cuts Repo Rate by 0.25%: What It Means for Loans & Economy!". 2. "RBI’s First Rate Cut Since 2020: Impact on Home & Car Loans". 3. "Growth Push: RBI Reduces Interest Rates – Will It Boost the Economy?". 4. "RBI Slashes Repo Rate to 6.25% | Cheaper Loans & Inflation Outlook". 5. "India’s Interest Rate Cut: How RBI’s Move Affects You!".