It’s Long-Awaited Relief

Kolkata: The repo rate cut by 25 basis points by the monetary policy committee (MPC) of RBI announced Friday will give a long-awaited relief on interest rates and also be supportive of economic growth, according to experts.

Repo rate is the interest rate at which the RBI lends money to commercial banks. Chief economist of Crisil Limited Dharmakirti Joshi said that as expected, the MPC of the central bank cut rates for the first time since May 2020.

The repo rate has been cut by 25 basis points which now stands at 6.25 per cent. Joshi said that the recent easing in consumer price index (CPI) inflation and the need to remain supportive of economic growth has moved the RBI to act in this regard.