Home, auto and other loans are likely to see a drop in interest rates after the Reserve Bank of India under a new Governor cut the key benchmark rate on Friday for the first time in almost five years to spur a sluggish economy.

India’s central bank cut interest rates Friday for the first time in nearly five years, as concerns over a growth slowdown in the world’s fifth largest economy outweighed inflation risks.

Stakeholders say RBI’s 25 bps rate cut will boost real estate demand, affordability, and liquidity, driving growth across residential, commercial projects

RBI Governor Sanjay Malhotra has finally announced what the economy and the market have been waiting for: the first rate cut in post-COVID India. The MPC, said the new RBI Governor, has decided unanimously to cut the repo rate—which is the key interest rate at which the RBI lends money to commercial banks—by 25 basis points.

The rate cut comes even as the past four headline inflation prints were above 5 per cent. RBI Governor Sanjay Malhotra noted that inflation is expected to decline. This was the first MPC meeting since Malhotra took over as RBI governor in December last year.

The Reserve Bank of India (RBI) cut its key interest rate for the first time in nearly five years on Friday, as it seeks to boost the sluggish economy and sees inflation easing towards its 4% target.

The Reserve Bank of India has cut its key interest rate for the first time in nearly five years, as cooling inflation has offered room to stimulate the slowing economy. The Monetary Policy Committee decided to trim the repo rate by 25 basis points to 6.

RBI cuts policy rate by 25bps to 6.25%, aiming to boost slowing growth while managing inflation; further cuts expected in April amid cautious stance.

The Reserve Bank of India (RBI) cut its key repo rate for the first time in nearly five years on Friday to provide stimulus to the sluggish economy, which is expected to grow at its slowest pace in four years in the current fiscal year.