It has been reported that the bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW'>reserve bank of india is going to further reduce the repo rate. The repo rate is calculated based on the loans given by the Reserve bank to nationalized banks. When the Reserve bank reduces the repo rate, the interest for those who have taken loans for houses and cars from nationalized banks in the country will be reduced. This will reduce the loan amount or the loan installment. In that regard, icici bank has said that the Reserve bank may reduce the repo rate by 25 basis points in the monetary policy meeting to be held in August. Accordingly, the interest rate is currently 5.5%. When the interest rate decreases, it becomes very easy to borrow. This will increase the economy of businesses and people. Likewise, those who are going to take out loans to buy a house or a vehicle are likely to benefit from this.
Meanwhile, according to a new report on India's economic growth, "The demand for goods in urban areas is now decreasing. However, the demand for goods in rural areas is still high. India's exports to the US have grown well. However, India's exports to other countries are still facing problems. Considering the current inflation, ICICI has said that it is the right time for the bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW'>reserve bank of india (RBI) to cut interest rates by 0.25% in August.
In that regard, the Reserve bank has reduced the repo rate by 100 basis points this year based on inflation. In the last monetary policy meeting, the bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW'>reserve bank of india reduced the repo rate by 50 basis points. Following this, inflation, which is 4.6% this year, is expected to average 3 to 3.2% in 2026. Since inflation is favorable, it has been reported that the bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW'>reserve bank of india will reduce the repo rate by another 25 basis points. The meeting will be held in August. An official announcement on this will be made after the monetary policy meeting.

Warning on the global economy: The global economy is currently in a state of flux, and there is a confusing situation. Last month, due to a minor conflict in the Middle East, oil prices suddenly increased. This poses a risk of raising costs worldwide. Similarly, the taxes announced by US President donald trump will come into effect from august 1. These are higher than the existing taxes. This has already had an impact on US inflation. Although the US economy is performing better than expected, growth seems to be slowing.

In this context, the US Federal Reserve has not cut interest rates at the moment. However, if growth falls further in the future, it is said that interest rates may be cut by the end of this year.
For more interesting updates wa click and follow Indiaherald WhatsApp channel

Find out more:

repo rate

Sowmiya Sriram

18/07/2025 06:31 PM