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As RBI Cuts Lending Rates by 0.25%, Home, Auto Loans May Get Cheaper
August 07, 2017
This Wednesday, the Reserve Bank of India slashed the key lending rates from 6.25% to 6%, the lowest in the past 7 years. This move is expected to bring down the interest rates on home loans, car loans, etc. and give an impetus to the economy as well.
While the RBI has cut the repo rate, i.e. the rate at which it lends to the banks, citing low inflation and to stick to its neutral stance, the reverse repo is adjusted accordingly to 5.75%. This is the rate which banks get for parking their funds with the RBI.
