The Reserve Bank of India (RBI) on Wednesday lowered the key interest rate by 25 basis points to 6%, marking the second consecutive rate cut aimed at supporting an economy weakened by reciprocal tariffs from the US.
With this move, the policy rate now stands at 6%, offering some relief to borrowers of home, auto, and corporate loans.
In its previous policy review in February, the RBI had also cut the repo rate by 25 basis points, bringing it down to 6.25%. That reduction followed a prior cut in May 2020. Before this, the most recent rate change occurred in February 2023, when the policy rate was increased by 25 basis points to 6.5%.