The RBI Governor announced the reduction in the repo rate by 25 basis points in the MPC meeting today. The latest repo rate cut will help the borrowers to reduce their EMIs in the upcoming months and relief from higher EMIs.

This reduction in FD rates will impact depositors, especially senior citizens, who are dependent on interest earned from fixed deposits parked with banks.

The RBI’s recent 25 basis point repo rate cut to 6% reflects a shift to an accommodative stance amid softening inflation. Economists predict further cuts may occur, contingent on global economic conditions and trade tensions.