Kolkata: The Reserve Bank of India (RBI) has cut its policy rate by 25 basis points. This move is expected to bring down loan interest rates, lower EMIs, and reduce fixed deposit (FD) rates.
This is the first rate cut by the RBI in nearly five years. The decision was taken by the RBI’s Monetary Policy Committee (MPC). It was also the first meeting chaired by the new RBI Governor, Sanjay Malhotra, who recently replaced Shaktikanta Das.
For over a year, the RBI had resisted rate cuts due to inflation. However, the latest decision signals a shift in policy, bringing hope to borrowers and businesses.
Economist Mitali Nikore said home loan rates could start dropping within the week. She added that fintech firms might lower rates first, followed by major banks. Banks are also expected to notify customers soon about changes in FD rates.
Experts believe this rate cut will benefit common people and boost India’s GDP growth. Lower interest rates can make loans cheaper, encouraging spending on homes, cars, and education.
The move is also expected to help industries by reducing borrowing costs. With more disposable income and cheaper loans, consumption is likely to rise. This could lead to more job opportunities and economic growth.
The government has already provided tax relief to individuals in the latest budget. This interest rate cut further supports economic expansion and benefits consumers.
The RBI’s decision is expected to have a positive impact on the economy in the coming months.
