Mumbai, Dec. 5 -- The Reserve Bank of India (RBI) released its bi-monthly monetary policy here on Friday after the Monetary Policy Committee (MPC) concluded its three-day review process which began on Wednesday with an RBI panel led by RBI Governor Sanjay Malhotra unanimously voting to cut the government securities (G-Secs) repurchase (repo) rate by 25 basis points (bps) to 5.25 percent.
A basis point (bp) is an interest rate of 0.01 percent.
The RBI's move is expected to boost liquidity in the market through higher spending in interest rate-sensitive sectors like banking, real estate, and consumer durables. The RBI's repo rate cut is expected to provide a sigh of relief to new home loan borrowers as well. A reduced repo rate would enable...