RBI Repo Rate Cut: RBI has announced the new Repo Rate! You will get these benefits due to a 50 basis point cut

RBI Repo Rate Cut: The Reserve Bank of India has taken important decisions in the recently concluded MPC meeting. After this meeting, the Reserve Bank of India has provided significant relief to all Indian citizens. This time, the Reserve Bank of India has cut its repo rate for the third time. This time, it has been reduced by 50 basis points at once, due to which Indian citizens are going to benefit greatly. Now the repo rate has come down from 6% to below 5.50%.

The last time the RBI meeting was held, a 25 basis point cut was made. If you have taken any loan from a bank, due to the RBI repo rate cut, the amount of your EMI will be reduced.

RBI Repo Rate Cut

Due to the RBI’s repo rate cut, the SDF rate has now been reduced from 5.75% to 5.25%. Along with this, the MSF rate has been reduced from 6.25% to 5.75%. Keeping the market in mind, an inflation increase of 3.7% is estimated this time. Along with this, the Governor of the Reserve Bank of India has informed that a decision is being made to reduce the reserve ratio from 4% by 100 basis points to 3%.

How will GDP be?

Due to this repo rate cut, it was speculated that changes would also be seen in GDP growth. However, in the first quarter of the financial year 2026, GDP is estimated to be 6.5%, in the second quarter 6.7%, in the third quarter 6.6%, and in the fourth quarter 6.3%.

Impact of Repo Rate Cut on Bank Loans

Due to the reduction in the repo rate, customers who have taken loans benefit greatly. When the repo rate is cut, the amount of the upcoming loan installments also decreases. On the other hand, when the repo rate increases, the EMI burden increases. In such a situation, this decision of the Reserve Bank of India will prove to be very beneficial for those customers who have taken loans from banks.