After the RBI cut the repo rate, these two banks reduced their interest rates, Know The Details
The RBI Cut The Repo Rate: After the Reserve Bank of India (RBI) announced a six-month cut in its key policy rate (repo rate) on Friday, two major public sector banks—Bank of Baroda and Bank of India have reduced their interest rates on repo-linked loans by 25 basis points (0.25%). This move signals that other banks will soon follow suit in providing cheaper loans to consumers.
According to PTI news, Bank of India has reduced its Repo Linked Lending Rate (RBLR) from 8.35% to 8.10%. This new rate has come into effect from Friday. Similarly, Bank of Baroda has announced a reduction in its Baroda Repo Linked Lending Rate (BRLLR) from 8.15% to 7.90%. This reduction will be effective from December 6. Earlier this week, Indian Bank also reduced its Marginal Cost of Funds-Based Lending Rate (MCLR) by 5 basis points to 8.80%, which is effective from December 3.
On Friday, in its monetary policy review, the RBI reduced the benchmark repo rate by 25 basis points to 5.25% for the first time in six months. The RBI also decided to inject an additional Rs 1 lakh crore of liquidity into the banking system, aimed at strengthening the “Goldilocks” (balanced and stable growth) economy. The six-member MPC, headed by RBI Governor Sanjay Malhotra, took this decision unanimously. The committee maintained its neutral stance, leaving open the possibility of future rate cuts.
