RBI MPC Meeting: The Reserve Bank of India (RBI) has cut the repo rate for the third time in 2025. Now the repo rate has come down from 6 percent to 5.5 percent. This has given great relief to the general public of the country.

RBI MPC Meeting: The Reserve Bank of India (RBI) has again given great relief to the general public of the country by reducing the repo rate. On Friday morning, Reserve Bank of India Governor Sanjay Malhotra announced a cut of 50 basis points. After this cut, the repo rate has now come down from 6 percent to 5.5 percent. This decision was announced after the end of the three-day meeting of the Monetary Policy Committee (MPC) in Mumbai.

This is the third cut in a year

This is the third time in the year 2025 that the repo rate has been cut. A cut of 25 basis points was made in February and April. This indicates the Reserve Bank's growing confidence in reducing inflation in the country and adopting a more liberal monetary policy to support economic growth.

Announcing the cut in the repo rate today, Governor Sanjay Malhotra said that in view of the current economic situation of the country, the committee has changed the policy stance from 'Accommodative' to 'Neutral'. This means that now in the next meeting, no immediate decision will be taken regarding reducing or increasing the repo rate. Looking at the current situation, now a decision will be taken regarding the repo rate in the coming time. However, the rate cut done now was necessary to support economic growth in the current circumstances.

How will the reduction in repo rate affect your pocket?

Along with the decision to cut the repo rate, Governor Sanjay Malhotra has now kept the Standing Deposit Facility (SDF) at 5.25 percent, while changing the Marginal Standing Facility (MSF) and bank rate to 5.75 percent. Now the biggest question comes that what are the benefits of reducing the repo rate to the common man? Let's take a look at this.

The biggest benefit of reducing the repo rate is that it will reduce the cost of lending further. That is, banks will now reduce the interest rate on home loans, auto loans, personal loans, retail loans. This will reduce your monthly EMI, which will help you save more.

Now if someone is thinking of taking a new loan, he will also get it at a lower interest rate. That is, whether it is an education loan or a car loan, now you will get it cheaper than before.

With the reduction in the repo rate, the interest on SME and business loans will also decrease. As a result, it will be easier to run a business. This will provide employment to more and more people, and economic activities will also increase. Overall, the country's economy will be strong.

It is obvious that there will be some savings from EMI, so the income spent on other things will increase. People will shop more or invest. This will strengthen the business and will also boost the country's economy.