New Delhi, Feb. 7 -- India's central bank, the Reserve Bank of India (RBI), concluded the monetary policy committee on Friday, February 8, and announced a 25-basis-point rate cut to 6.25 per cent for the first time in five years.

RBI also lowered its growth forecast for the Indian economy to 6.7 per cent, citing the headwinds of geopolitical tensions, protectionist trade policies, volatility in international commodity prices, and uncertainties in the financial markets.

This interest rate cut will prove significant for Indian borrowers who have taken out a home loan or personal loan, among other borrowings. This 25-basis-point rate cut will reduce their EMI amounts, provided the banks decide to transfer interest rate relief to the econom...