RBI Cuts Key Interest Rate Week Before Polls, Loans Set To Be Cheaper | Read

The Reserve Bank of India's Monetary Policy Committee on Thursday announced a reduction in repo rate by 25 basis points or 0.25 per cent to 6 per cent, meeting a majority of economists' expectations. Meanwhile, the RBI maintained its neutral stance on trajectory of interest rates going ahead. Repo rate is the key interest rate at which the RBI lends short-term funds to commercial banks. More than 85 per cent of the nearly 70 economists polled by news agency Reuters had expected the central bank to cut the benchmark lending rate by 25 basis points to 6.00 per cent today.