RBI cuts repo rate by 25 basis points

Key rate cut after 5 years

- Roshan Kishore

NEW DELHI: Corporate and retail loans (including home loans) will get cheaper as the Reserve Bank of India's Monetary Policy Committee (MPC) pivoted its policy by cutting the policy rate for the first time in five years, with analysts expecting another cut in April when the committee meets next.

The quantum of the rate cut -- 25 basis points or 0.25 percentage points to 6.25% -- was in line with expectations although it disappointed the more optimistic analysts who were hoping for a 50-point cut, and the stock markets which had already factored in a 25 basis point cut.