RBI cuts rep rate by 25 bps: Your loans will now get cheaper

RBI rate cut: The monetary policy committee chaired by new Governor Urjit R Patel met for two days and decided to cut the repo rate from 6.25 per cent.

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RBI policy review: This was the first time that rates were set by a panel rather than the governor alone.

Loans will get cheaper for customers as the Reserve Bank of India on Tuesday cut its key policy rate by 25 basis points in its fourth bi-monthly monetary policy review for the year citing a declining momentum in food inflation. All six members of its newly formed monetary policy committee voted in favour of a rate cut.

This was the first time that rates were set by a panel rather than the governor alone. The monetary policy committee chaired by new governor Urjit R Patel met for two days and decided to cut the repo rate from 6.25 per cent.

WATCH VIDEO: Reserve Bank Of India Cuts Repo Rate By 25 bps To 6.25%

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Also Read: RBI cuts repo rate by 25 bps in fourth bi-monthly policy

Consumer price inflation had decelerated to 5.05 per cent in August from over 6 per cent in July as good monsoons and better than expected sowing brought down food inflation. Growth pick-up, however, has been slow with a lower than expected first quarter GDP growth at 7.1 per cent.