Repo rate Cut by 0.5% by RBI

RBI cut repo rate by 0.5% , Thus repo rate became 8.0 from 8.5%. There is No change in Cash Reserve Ratio( C.R.R). The Cut in Repo rate may help to have a decrease in the Interest rate of Housing Loan, and Vehicle Loan

The rate at which the RBI lends money to commercial banks is called repo rate. It is an instrument of monetary policy. Whenever banks have any shortage of funds they can borrow from the RBI. A reduction in the repo rate helps banks get money at a cheaper rate and vice versa.