Central Bank Shifts to Accommodative Policy to Spur Growth
How to Get the Best Home Loan Rate After RBI's Decision
Mumbai, April 10, 2025 – In a move expected to benefit borrowers across India, the Reserve Bank of India (RBI) today slashed the benchmark repo rate by 25 basis points to 6%, marking the second rate reduction this year.
Key Highlights
✔ Rate Change: Repo rate reduced from 6.25% to 6% (25 bps cut)
✔ Policy Stance: Shifted from "neutral" to "accommodative"
✔ Previous Cut: February 2025 (50 bps reduction)
Immediate Effects on Consumers
- Cheaper Loans: Home, auto, and personal loan EMIs likely to decrease
- Boost for Real Estate: Expected revival in housing demand
- Business Growth: Lower borrowing costs for companies
Economic Outlook
| Indicator | Prev. Projection | Revised Projection |
|------------------ |------------| --------------------|
| GDP Growth (FY26)| 6.7% | 6.5% |
| Inflation | - | 4% (target) |
"The downward revision reflects global headwinds," an RBI spokesperson noted.
Expert Reactions
▶ Aditi Nayar, Chief Economist, ICRA
"Expect additional rate cuts if growth momentum weakens further."
▶ Mandar Pitale, Head of Retail Banking, Axis Bank
"Banks will transmit this cut swiftly – good news for loan seekers."
▶ Raoul Kapoor, Financial Analyst
"First-time homebuyers stand to gain the most from this decision."
What's Next?
While inflation remains within the RBI's comfort zone (4%), future policy moves will depend on:
- Global commodity price trends
- Progress of monsoon season
- US Federal Reserve's rate decisions
Economists suggest borrowers should compare lenders as rate transmission may vary across banks.
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