RBI decreases repo rate by 25 basis points to 6.50 per cent

The Reserve Bank of India (RBI) decreased its repo interest rate by 25 basis points to 6.50 per cent, bringing it to a five-year low. The repo rate is the rate at which the central bank lends to private banks in the country. The 0.25 per cent cut in the repo rate together with the reduction in the small savings rate and the marginal cost of funds-based lending rate is expected to put pressure on banks to cut retail lending rates.

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