Loans likely to become cheaper as RBI announces .25 per cent cut in repo rate

Loans are likely to get cheaper as the RBI has announced a 0.25 per cent cut in the repo rate in its third bi-monthly monetary policy review. The key interest rate has now come to down to 6 per cent.

The top bank kept the reverse repo rate at 5.75 per cent.

The six-member monetary policy committee (MPC) of the RBI headed by RBI Governor Urjit Patel announced the rate cut for the first time in 10 months. The central bank last cut its key interest rate in October 2016.