Another big update has come from the RBI. Let us tell you that a big announcement has been made by Governor Sanjay Malhotra, in which three external monetary policy committee members were included and now the big update that has come out regarding this is that the repo rate has been reduced by 50 basis points to 5.5%. This will also make home loans cheaper and it will benefit the borrowers as well as the loan takers.
Reduction in repo rate can be beneficial. You know that the reserve ratio (CRR) has also been reduced by 100 basis points to 3 percent, which can benefit all the citizens associated with the banking sector and can also strengthen the banking system. Apart from this, there can also be an increase of Rs 2.5 lakh crore in surplus ease.
Total cut of 100 basis points
If we talk about the post changed by RBI regarding interest rates, then a total of 100 basis points have been cut. Apart from this, a cut of one-fourth point was made in February and the first cut was made in May 2020, after that in April and now a decision has been taken to make a very big cut, due to which the central bank has changed its monetary policy to neutral, which will benefit everyone. Apart from this, Governor Malhotra has also said that further action may depend on the data coming and different rules can also be made in the coming time.
This question also comes in everyone’s mind that what could be the reason for changing this policy, so let us tell you that the RBI Governor has also told about this that he has said that in the last 6 months, there has been a significant reduction in the price rise of inflation, due to which its level had gone down significantly in October 2024, due to which there is a need to change it.
Reduction in repo rate can make home loans cheaper, which can benefit ordinary and middle class citizens. RBI is making efforts to ensure that all citizens benefit from this new policy. There can be a big announcement regarding reduction in repo rate in the coming time, although no information has been received in this matter yet.