Larger-than-expected surprise: RBI cuts repo rate by 50 bps to 5.5%; EMIs to come down
[ad_1] RBI monetary policy today RBI MPC Meeting: In a big cheer for loan borrowers, RBI governor Sanjay Malhotra announced a more-than-expected 50 basis points repo rate cut. The repo rate now stands at 5.5%, down from 6%. RBI has cumulatively cut the repo rate by 100 basis points since its February policy review. However, RBI governor Sanjay Malhotra made it clear that the central bank is now left with limited room to support growth. Hence the monetary policy stance has been changed from ‘accommodative’ to ‘neutral’.Repo rate is the rate at which the RBI lends to banks, hence a cut in repo rate is ideally supposed to mean lower borrowing costs for bank customers as well.Also Check | RBI MPC Meeting Live Updates“Amidst heightened volatility in capital flows and exchange rates, coupled with constrained policy space, central banks of […]