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Home, auto loans to get cheaper as RBI cuts interest rates to support 'goldilocks' economy

The Political and Business Daily

|

December 06, 2025

Step to support economy hit hard by US tariff hike

HOME, auto and other loans are likely to cost less as the Reserve Bank of India (RBI) on Friday cut key benchmark interest rate for the first time in six months and vowed to provide Rs 1 lakh crore liquidity boost to banking sector to support a "goldilocks" economy in the face of high US tariffs.

The six-member monetary policy committee, led by RBI Governor Sanjay Malhotra, voted unanimously to lower the repurchase or repo rate by 25 basis points to 5.25 per cent and retained a neutral stance, which gave room for further rate cuts.

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