RBI Repo Rate: A big relief for borrowers from the Reserve Bank of India; EMI will be reduced, read in detail

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Although it's the first week of December, the year is coming to an end. Before the new year, RBI has given a big relief to customers. There is a possibility of a reduction in EMI before the New Year. The Reserve Bank of India (RBI) has announced a 0.25 percent cut in repo rates today. As a result of this decision, banks will now get loans from RBI at cheaper rates. Consequently, borrowers are likely to get a big relief as monthly installments of loans like home loans and vehicle loans may decrease.

According to a report by CNBC Awaaz, Reserve Bank of India Governor Sanjay Malhotra announced a significant decision from the MPC meeting. RBI has made an important decision in its monetary policy, reducing the interest rate by 0.25 percent. Along with this, the repo rate has been reduced from 5.50 percent to 5.25 percent. This decision has been made while inflation is at a record low level and there is a need to support growth.

The direct impact of the reduction in the repo rate is also affecting the pockets of common people. EMI on home loans, car loans, and other retail loans may decrease in the future. However, banks need to monitor how quickly this concession is given to customers.

Lower interest rates are expected to create positive sentiment in the market, as lower interest rates encourage both investment and spending. Overall, this step by the RBI is seen as a major signal to boost development and accelerate economic activities. It is expected that this decision will provide significant support for social and economic stability to consumers. It is also observed that this strategic change in the financial sector will increase market confidence and stimulate economic growth. This will be an important milestone for economic reforms in the new year.