RBI cuts repo rate by 25 basis points to 5.15%
Mumbai: The Reserve Bank of India (RBI) cut its benchmark interest rates by 0.25 per cent — from 5.40 per cent to 5.15 per cent on Friday.
This is the fifth straight cut in its rates by the RBI in 2019 in a bid to reduce borrowing costs for home and auto loans.
The RBI monetary policy committee announced 25 basis points cut in its policy rates in an effort to boost a sluggish economy as inflation remains in a comfortable zone.
The six-member Monetary Policy Committee (MPC) cut the repo rate by 25 basis points. According to the latest updates, RBI cut repo rate from 5.40% to 5.15%. Moreover, reverse repo rate adjusted to 4.90% and bank rate at 5.40 %, accordingly.
Repo rate is the rate at which the RBI lends money to commercial banks. A repo rate cut allows banks to reduce interest rates for consumers and lowers equal monthly instalments on home loans, car loans, and personal loans.
After the first-quarter GDP growth rate slid to 5 per cent, the RBI has also lowered the GDP growth forecast for the current fiscal — from its earlier estimate of 6.9 per cent to 6.1 per cent.
Meanwhile, Sensex today opened with a gain of over 250 points to trade at 38,350 and Rupee inches 10 paise against the USD to trade at 70.78.