RBI MPC meeting: RBI is good news for the people of the country! Cut in interest rates ..

Another good news for middle class people after budget 2025! The RBI (Reserve Bank of India) announced on Friday that it has been cutting high interest rates for a long time. RBI Governor Sanjay Malhotra said that the repo rate was cut in 25 basis points.

This is the first time in about 5 years when RBI has cut interest rates. The repo rate with the latest cut was 6.5 % to 6.25 %.

In view of the recession in the country’s economy, the middle class people. Nirmala Sitarman has announced that the budget of zero tax has been announced in 2025 on revenue of 12 lakhs. Now RBI has also cut interest rates and has become more and more often for the middle class.

What is a repo rate?

REPO rate is called interest rate on loans given by RBI to commercial banks. The RBI lends to commercial banks on government securities such as bureaucracy. The Central Bank Monetary Policy Committee (MPC) assesses various financial indicators and determines the repo rate. The MPC consists of six members, including the RBI Governor.

If the repo rate decreases, various banks will reduce the interest of the loan offer from outside. It gives people an opportunity to spend less than their pockets. As a result, savings increase or spend people on other people. Due to which the economy of the country is overturned.

Heavy expectations on interest rate cut

This time, the market is expected to be ahead of the RBI interest rate cut. Experts believe that the repo rate will have at least 25 basis points, which will reduce the existing 6.5 percent benchmarks.

India’s GDP growth rate increased to 5.4 % in the second quarter of the financial year 2024-25. It is the most recession of seven quarters in a row!

At the same time, inflation fell by 5.22 % to 5.22 % in December 2024. In October 2024 it was at the high (6.2 percent) of 14 -maaheen.