The repo rate is the rate at which commercial banks borrow from the RBI. This drop comes after nearly 5 years of house loan borrowers seeing only rate increases or stagnation. Following the reduction in the RBI repo rate,

The Reserve Bank of India (RBI) reduced its key repo rate on Friday for the first time since May 2020, aiming to provide stimulus to the sluggish economy, which is projected to grow at its slowest pace in four years during the current fiscal year.

In addition to the repo rate cut, the Standing Deposit Facility (SDF) and Marginal Standing Facility (MSF) rates have also been reduced by 25 bps to 6% and 6.5%, respectively. The bank rate has also been adjusted to 6.5%.