The Reserve Bank of India's Monetary Policy Committee voted 4-2 to cut the benchmark repo rate by 25 basis points to 6% — the second consecutive cut in 2025 — in a bid to stimulate economic growth.
The RBI governor said the rate cut was driven by declining inflation, which came in at 3.8% in the last quarter, comfortably below the 4% target.
For borrowers, the rate cut is expected to translate into approximately ₹800 per month reduction in EMI on a ₹50 lakh home loan with a 20-year tenure, subject to banks passing on the full benefit.