Mumbai, April 9 -- The Reserve Bank of India (RBI) on Wednesday lowered the repo rate by 25 basis points (bps), taking the total cut in this easing cycle to 50bps. On top of that, RBI governor Sanjay Malhotra pointed out that the central bank's decision to change its stance from accommodative to neutral meant that in the absence of any shocks, there would be no rate hikes now, only status quo or rate cuts. This should cheer retail borrowers with floating-rate loans, most of whom have already benefited from the previous cut of 25bps in February. One basis point is one-hundredth of 1 percentage point.

Mint explains how the latest RBI move would impact borrowers and depositors.

For retail borrowers with floating-rate loans, this means a re...