Repo rate cut by 0.25 percent after five years, middle class will get relief in EMI

New Delhi. The Reserve Bank of India (RBI) has cut the repo rate, giving a big relief to the middle class. This cut in the repo rate has been done by 25 basis points, due to which now the current repo rate has become 6.25 percent. This cut in repo rate has been done after 5 years. Earlier, the Reserve Bank of India (RBI) had reduced the repo rate in May 2020. However, after that it was gradually increased to 6.5 percent. The last time the repo rate was increased was in February 2023.

The governor said that the meeting discussed economy development. The governor further said that we have decided in the meeting that the repo rate is being reduced. Now the repo rate is being reduced from 6.50 to 6.25. After the cut in repo rate, now the EMI of your loan will be reduced.

The governor said that the global economy is going through challenges. Along with this, inflation is also increasing at the global level. The Federal Reserve Bank is also cutting rates. Geopolitical tension is also increasing. Due to which the economy around the world is getting affected. The Indian rupee is currently under pressure. The Reserve Bank faces many big challenges.

Real GDP growth is estimated to be 6.5 percent in FY 2025, which was 8.2 percent last year, GDP will improve in the coming years. There has been improvement in the manufacturing sector. There has also been improvement in the mining sector. PMI service declined in the last quarter. Demand is increasing in rural areas.