“The 25 basis points cut in the repo rate by the RBI’s Monetary Policy Committee, after a period of almost five years, is a welcome move. The reduced rate from 6.50% to 6.25%, will result in reduction of interest rates for both individuals and business borrowers, and stimulate economic growth. Individuals can expect a reduction in EMIs on home loans as well as personal loans. Businesses will benefit from lower borrowing costs, which can lead to increased investment in expansion and new projects. With the GDP growth projected at 6.7% and retail inflation at 4.2% for the fiscal year 2025-26, the rate cut can be seen as a balanced approach to boost economic stability and growth.”
