The repo rate is the rate at which commercial banks borrow from the RBI. This drop comes after nearly 5 years of house loan borrowers seeing only rate increases or stagnation. Following the reduction in the RBI repo rate,

(Reuters) -The Reserve Bank of India (RBI) reduced its key repo rate on Friday for the first time since May 2020, aiming to provide stimulus to the sluggish economy, which is projected to grow at its slowest pace in four years during the current fiscal year.

The Reserve Bank of India (RBI) has cut the repo rate by 25 basis points to 6.25%, the first cut since 2020, under new Governor Sanjay Malhotra. The move aims to boost demand and growth across sectors like housing and automobile while maintaining a neutral policy stance.