RBI reduced interest rate, announced cut of 25 basis points, loans will be cheaper

RBI Monetary Policy 2025: RBI's Monetary Policy Committee (MPC) has cut the repo rate (Rate Cut) by 25 basis points (bps). Let us tell you that RBI has announced the cut after 5 years. After which the repo rate came down by 25 basis points to 6.25%. The general public and the business sector are expected to get relief from this decision of RBI.

Earlier, RBI had not changed the interest rates in 11 consecutive meetings.

What will be the effect on EMI now?

This decision was taken in the Monetary Policy Meet chaired by the new RBI Governor Sanjay Malhotra. Home loans, car loans and business loans will become cheaper due to the reduction in interest rates.

RBI took this decision because inflation is coming down and is likely to come down further next year. Rural demand is increasing, which will support the economy. Urban demand is still a bit sluggish, but improvement is expected.

How will you benefit from this decision?

Home loans and car loans can become cheaper: Banks can now cut interest rates, which can reduce EMI. • Business loans will also be affected: Companies will get cheaper loans, which will boost business.

Economy will get a boost: People will spend more due to lower interest rates, which will benefit the market and business.

Economic growth forecast for FY26 increased

RBI Governor Sanjay Malhotra said that inflation has come down and the decline is expected to continue. At the same time, RBI has increased India's economic growth forecast for FY26 from 6.6% to 6.7%.

Also Read: One decision of RBI & Home Loan EMI will be reduced by Rs 1 lakh! Know how?

At the same time, GDP growth rate can be 6.7 percent in FY 26. GDP growth rate can be 6.7 percent in the first quarter of the next financial year, 7 percent in the second quarter, 6.5 percent in the third quarter and 6.5 percent in the fourth quarter. Inflation rate estimated to be 4.2% in FY 2025-26

The Reserve Bank of India (RBI) has estimated the inflation rate to be 4.2% in the coming financial year 2025-26. RBI has divided this inflation estimate for FY26 into four quarters. Inflation is estimated to be 4.5% in April-June, it may come down to 4% in July-September and is expected to come down further to 3.8% in October-December.

RBI said that it will adopt a "neutral stance", that is, policies can be changed further as per the need

"Cyber ​​fraud is a matter of serious concern, need to take immediate action"

RBI Governor Sanjay Malhotra said that with the digitization of financial services, cyber risk is also increasing, which is a matter of serious concern and all stakeholders will have to take immediate action on it. Banks will have to develop better reaction and recovery systems to deal with cyber fraud. Apart from this, a working group will be formed to review trading and settlement timing in the market.

To further strengthen cyber security, an exclusive bank.in domain will be introduced for Indian banks, whose registration will start from April this year, and this will help in controlling online fraud.