RBI big surprise on interest rates... relief for borrowers!

The Reserve Bank of India has announced yet another reduction in key interest rates, bringing relief to borrowers. The RBI confirmed a cut of 25 basis points in the latest monetary policy review, lowering the repo rate to 5.25%. Governor Sanjay Malhotra shared the details during Friday’s briefing.

This marks the fourth interest rate cut within the year. Earlier in February and April, the RBI reduced rates by 25 basis points each, followed by a larger reduction of 50 basis points in June. With the latest adjustment, the total repo rate cut in 2025 now stands at 1.25%.

The reduction is expected to ease loan burdens for homebuyers, vehicle owners, and businesses while giving a boost to overall economic activity.