Mumbai/IBNS, June 6 -- In a relief for loan borrowers, Reserve Bank of India (RBI) Governor Sanjay Malhotra on Friday announced a reduction in the repo rate by 50 basis points, media reports said.

The central bank's new cut will boost the loan borrowers as EMIs will be cheaper.

It was widely speculated that the RBI would announce a cut in the repo rate by 25 basis points.

The cumulative cuts in the repo rate since February this year now stands at 100 basis points.

The RBI Governor said the retail inflation for the year will be 3.7% from the earlier 4 percent which was projected in April.

The central bank has projected the GDP growth for the ongoing fiscal year as 6.5%.

The GDP growths as per quarters are projected to be 2.9% (Q1), 3...