EMIs on home and vehicle loans will come down, making it easier for individuals to repay their debts. A lower repo rate makes borrowing cheaper for individuals and businesses, which can lead to increased spending and investment.

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The cut comes after the MPC kept rates unchanged for 11 consecutive meetings, following a 250 basis point increase from May 2022 to February 2023. The repo rate had remained at 6.5 per cent since April 2023, aiming to control inflation and bringing it back to the medium-term target of 4 per cent.

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.

The Reserve Bank of India cut its key repo rate by 25 basis points to 6.25%, the first cut in nearly five years. This decision from the Monetary Policy Committee aims to stimulate economic growth and offers relief to borrowers with lower EMIs.

The Reserve Bank of India's (RBI) six-member Monetary Policy Committee (MPC) on Friday cut the repo rate by 25 basis points to 6.25 per cent.

The Reserve Bank of India's (RBI) six-member Monetary Policy Committee (MPC) cut the repo rate by 25 basis points to 6.25% on Friday. This is the first time in five years that the RBI has lowered the rate at which it lends to banks.

Get the latest updates on the RBI Monetary Policy Meeting 2025, where the Reserve Bank of India has announced a historic repo rate cut, marking the first reduction in five years. Learn more about it i

The Reserve Bank of India (RBI) reduced its key repo rate on Friday for the first time since May 2020, aiming to provide stimulus to the sluggish economy, which is projected to grow at its slowest pace in four years during the current fiscal year.