support@headlinenews360.com
Repo Rate Cut: This is a big relief news for people who take borrowings or pay EMI on loan. The Reserve Bank of India has cut the repo rate on Friday, more than the market expectation. After a two -day meeting of the RBI Monetary Committee (MPC), which started from June 4, Governor Sanjay Malhotra announced a big cut of 50 basis points i.e. 0.50 percent. After this, the rape rate has now come down to 5.5 percent.
This is the third cut in the repo rate in the last six months from the RBI. Earlier this year, 25 basis points were cut in February this year and then in April 25 basis points were cut. After which the repo rate came to 6 percent.
All types of debt and EMI will be cheaper
After this decision of the central bank, all kinds of loans including car-home will become cheap. RBI Governor Sanjay Malhotra cut the repo rate and said that his move will give a lot of opportunity to investors inside the country. The Indian economy will be strengthened amidst the sluggish speed of global growth. Also, domestic demand will be further strengthened.
He said that during the monetary policy meeting, the SDF rate has been reduced from 5.75 percent to 5.25 percent. At the same time, the MSF rate has also been reduced by 6.25 percent to 5.75 percent. Along with this, the RBI Governor has also reduced the cash reserve ratio i.e. CRR by four percent to 100 basis points to 3 percent.
Economy expects speed
This decision was taken by RBI at a time when US President Donald Trump has recently increased the tariff rates on aluminum and steel to 50 percent. India has been a big exporter of both these products. In such a situation, this was considered a big shock for India.
Sanjay Malhotra has expected the growth rate of 6.5 percent for the financial year 2026. He said that the country’s growth rate may be 6.5% in the first quarter, 6.7% in the second quarter, 6.6% in the third quarter and 6.3% in the fourth quarter.
Better sign in market
Real estate experts are calling it a better step of RBI. Vikas Garg, Joint Managing Director of Ganga Realty, says that reducing the repo rate to 5.5% is a positive sign for the real estate sector. Possible decrease in interest rates will make home loans more economical, especially the demand to increase demand between mid-inculpne and first-time homebayers. He said that this step will give stability to the residential market and will speed up demand. Also, decrease in the cost of capital for developers will facilitate the implementation and funding of projects. To ‘neutral’ the monetary policy attitude shows that RBI is moving towards creating a balance between development and inflation. Overall, this decision will support the recovery of the sector and strengthen the confidence in the market.
