Repo Rate Cut: Results of the MPC meeting of Reserve Bank of India (RBI) have come and the central bank has once again given great relief. Actually, RBI has cut repo rate cut for the third consecutive time and has reduced it 50 basis points. After this latest cut, the repo rate has now come down to 5.50% below 6 percent. Let us know that in the last two MPC meetings, interest rates were reduced by 25-25 basis points. The bank is good news for customers taking loans, because their EMI will be reduced even more.
Loan EMI decreases when repo rate is low
The direct connection of Repo Rate is to the customers taking the bank loan. Due to its decrease, the EMI of the loan decreases and it increases due to the increase in it. Actually, the repo rate is the rate on which the central bank of a country lends money to commercial banks in the event of any shortage of money. The repo rate is used by monetary authorities to control inflation.
Repo Rate Cut Hat Trick
The meeting of RBI MPC started on 4 June and today its results were announced. Even before the fresh repo rate cut, it was given relief in this year’s last two meetings. Earlier in the meeting held in February, the repo rate was reduced by 0.25 percent, after which it had come down to 6.50% to 6.25% per cent. So after this, in the first MPC meeting of FY26 held in April, it was once again reduced by 25 basis points to 6% and now the Reserve Bank has given a big gift to customers taking loans by putting a hat -trick of REPO RATE CUT.