The Reserve Bank of India has once again cut key interest rates. RBI has reduced the policy repo rate by 0.40 per cent. With this reduction, the repo rate has now come down to 4 percent.
Reserve Bank Governor Shaktikanta Das gave this information at a press conference on Friday. Das said that the meeting of the Monetary Review Committee was to be held from June 3 to 5, but before that the committee had held the meeting and took important decisions.
RBI Governor Das said that the MPC has decided to reduce the reverse repo rate along with the repo rate. The RBI has reduced the reverse repo rate from 3.75 per cent to 3.35 per cent. Earlier on March 27, RBI had cut the repo rate by 0.75 percent.
At the same time, Das said that there has been a spurt in customers getting the benefit of rate cuts. Now banks can reduce their interest rates on loans due to reduction in repo rate. Explain here that the repo rate is the rate at which the country’s central bank lends to other banks.