GUWAHATI, Feb 7: The Reserve Bank of India (RBI) slashed the repo rate by 25 basis points to 6.25 per cent in the first rate cut by RBI in five years.
The decision to cut the repo rate was taken at a crucial meeting of RBI’s Monetary Policy Committee (MPC) with RBI Governor Sanjay Malhotra announcing the 25 basis point cut in the repo rate.
SDF and MSF have also been reduced by 25 basis points to 6 per cent and 6.5 per cent while Bank rate has been cut to 6.5 per cent.
The RBI MPC had met from February 5 following which the announcement was made today (Feb 7).
The rate cut will benefit borrowers who will see their EMIs coming down following the rate cut. After the income tax benefits announced for the middle class in the Union Budget 2005, the repo rate cut is expected to provide some much needed succour to the middle class.
