RBI under new Governor cuts interest rate for first time in 5 years
Mumbai, February 07, 2025.Home, auto and other loans are likely to see a drop in interest rates after the Reserve Bank of India under a new Governor cut the key benchmark rate on Friday for the first time in almost five years to spur a sluggish economy.The Monetary Policy Committee, headed by RBI Governor Sanjay Malhotra, slashed the repo rate by 25 basis points to 6.25 per cent. This was the first reduction since May 2020 and the first revision after two-and-a-half years.Malhotra, a career bureaucrat who replaced Shaktikanta Das barely days after the last bi-monthly MPC meeting in December, forecast the Indian economy to grow at 6.7 per cent in the fiscal year starting April 2025 while inflation rate to lower to 4.2 per cent.For the fiscal year ending March 31, RBI quoted ...
