RBI Cuts Repo Rate to 6%: What It Means for You

Apr 09, 2025 Khushi Kumari

In a major monetary move, the Reserve Bank of India has cut the repo rate by 25 basis points, lowering it from 6.25% to 6%

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The repo rate is the interest rate at which RBI lends money to commercial banks—impacting loans, EMIs, and economic liquidity

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The rate cut was announced during the first Monetary Policy Committee meeting of FY26, held between April 7–9

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RBI Governor Sanjay Malhotra emphasized that the cut aims to support growth while keeping inflation in check

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This is the second consecutive rate cut after a similar 25 basis point reduction in February 2025

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Lower repo rate means reduced borrowing costs—translating into cheaper home, auto, and personal loans

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Sectors like real estate and automobiles are expected to see increased demand due to lower EMIs

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