Mumbai, June 6, 2025 – The Reserve Bank of India (RBI) slashed the repo rate by 25 basis points to 5.5% today, aiming to spur economic growth, per Economic Times (dofollow). This cut, effective immediately, makes loans cheaper, potentially lowering EMIs for home and car loans. A ₹50 lakh home loan (20 years, 8.5%) could save ~₹1,500/month.
Banks may pass on benefits, boosting business borrowing and jobs, but savings rates could dip. The Sensex surged 1.2%, reports Mint (dofollow). Borrowers should refinance, while savers may lock in fixed deposits. Read our investment tips for more.
Disclaimer: Not financial advice. Consult a professional.