RBI slashes repo rate by 25 basis points , loans to get cheaper

The Reserve Bank of India (RBI) has slashed its repo rate by 25 basis points from 5.5% to 5.25%, the central bank's governor Sanjay Malhotra announced this morning, focusing on measures to bolster growth and shrugging off concerns about the rupee's slump.

- AGENCY

The decision was taken unanimously after a three-day meeting of the RBI's Monetary Policy Committee (MPC), held every two months to decide the central bank's strategy, as it weighed record low inflation against a falling rupee that hit its lowest yesterday.

The MPC had earlier reduced the key lending rate in June from 6% to 5.5% in view of a softening inflation.