On Friday, June 6, Reserve Bank of India announced a Repo rate cut of 50 basis points. RBI Governor Sanjay Malhotra-led Monetary Policy Committee (MPC) decided to cut the repo rate by 50 bps to 5.50% from 6.00% earlier.
In his monetary policy speech, Malhotra also announced that the MPC decided to cut the Cash Reserve Ratio (CRR) by 100 basis points (bps) to 3% from 4% earlier in four tranches of 25 bps each starting from September 6, and then on October 4, November 1 and November 29 this year.
This rate cut is likely to result in lower EMIs for long-term loans and will especially beneficial for people looking to buy homes. This is the 3rd consecutive rate cut by the RBI.
Sanjay Malhotra also asserted during his speech that the Indian economy is progressing well despite the global uncertainties.
