New Delhi: The country's Supreme Bank Reserve Bank of India has taken a big relief step. The Reserve Bank has again reduced the repo rate for the fifth time. In the meeting of the RBI's Monetary Policy Committee, the central bank announced a deduction of 25 basis points. With this, the new repo rate has been 5.15 percent, which was 5.40 percent earlier. It may be noted that in the last meeting held in August, 35 basis points were cut. In this way, so far this year RBI has cut the repo rate by 1.35%.
After this deduction, the EMI of your loan is going to be reduced now. The Reserve Bank has said that the repo rate can be further reduced. The reverse repo rate has come down to 4.9 percent. The bank rate has been kept at 5.40 percent. The central bank has lowered its GDP growth estimates from 6.9 per cent to 6.1 per cent in the current financial year. According to the MPC, the negative output gap has increased.
The country's growth rate reached 5 percent in the quarter ended in June. This is the lowest level of the last 6 years. RBI has also lowered the forecast of the country's growth rate from 7 percent to 6.9 percent. Recently, Finance Minister Nirmala Sitharaman made several big announcements to speed up the economy. Among them, the announcement of banks' merger, corporate tax cuts, new regulations on FDI and housing sector were prominent.
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