New Delhi, June 6 (H.S): Amid easing inflation, the Reserve Bank of India (RBI) has cut the policy interest rate (repo rate) by 0.50 percent to 5.50 percent. RBI Governor Sanjay Malhotra announced this in Mumbai following a three-day Monetary Policy Committee (MPC) meeting. This decision paves the way for potential reductions in home and car loan EMIs, contingent upon banks lowering their interest rates. Malhotra detailed the MPC’s aim to stimulate the domestic economy through this rate cut.

The real GDP growth rate for the financial year 2025-2026 is projected to remain at 6.50 percent, consistent with previous forecasts. The benchmarks for quarterly growth are set at 6.50 percent, 6.7 percent, 6.6 percent, and 6.4 percent, respectively. This marks the RBI’s third consecutive repo rate reduction, having previously lowered it by 0.25 percent in February and April.

Hindusthan Samachar / Jun Sarkar