RBI Cuts Repo Rate To 7-Year Low Of 6%, Loans Could Get Cheaper

The monetary policy committee (MPC) of the Reserve Bank of India (RBI) today cut repo rate or its key lending rate by 25 basis points to 6 per cent, the lowest since November 2010. Falling inflation allowed the central bank to focus on boosting the economy which grew at the slowest pace in over two years in the January-March quarter. Banks could lower lending rates further, making loans cheaper. RBI chief Urjit Patel, addressing the media, said, banks have scope for lowering lending rates further in some segments where transmission of lower rates has not been faster.