RBI Cuts Repo Rate for The First Time in Over Two Years- Are Loans Expected To Get Cheaper?

he Reserve Bank of India on Friday lowered the repo rate by 25 basis points, bringing it down from 6.5% to 6.25%. This marks the first rate cut under new RBI Governor Sanjay Malhotra. While this move is meant to boost demand and economic growth, its impact depends on whether or not banks pass the benefits to borrowers. With inflation projected at 4.2% and GDP growth expected at 6.7% in FY25-26, the decision comes amid global uncertainties and trade tensions. Will this cut revive the economy and make loans more affordable?