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  Business   Economy  04 Oct 2019  RBI cuts repo rate by 0.25 per cent to support growth

RBI cuts repo rate by 0.25 per cent to support growth

PTI
Published : Oct 4, 2019, 12:08 pm IST
Updated : Oct 4, 2019, 12:09 pm IST

The repo rate has been brought down to 5.15 per cent to help reduce borrowing costs for home and auto loans.

Reserve Bank of India's Monetary Policy Committee decided to cut benchmark lending repo rate by 0.25 per cent to 5.15 per cent in a bi-monthly meeting in Mumbai on Friday.
 Reserve Bank of India's Monetary Policy Committee decided to cut benchmark lending repo rate by 0.25 per cent to 5.15 per cent in a bi-monthly meeting in Mumbai on Friday.

Mumbai: The Reserve Bank on Friday cut its key rates by 0.25 per cent to boost economy from six-year low saying reduction was necessary to revive growth.

With first quarter GDP growth plunging to 5 per cent, the RBI cut its estimate of economic growth in the current fiscal to 6.1 per cent from its earlier estimate of 6.9 per cent.

 

The repo rate, at which it lends to the system, has been brought down to 5.15 per cent to help reduce borrowing costs for home and auto loans, which are now directly linked to this benchmark.

This is the fifth straight cut in rates by the Reserve Bank in its key rates in as much policy reviews in 2019, and takes the total quantum of reductions to 1.35 per cent.

Tags: reserve bank of india, rbi, economy, growth, gross domestic product, repo rate, home loans, auto loans
Location: India, Maharashtra, Mumbai (Bombay)