RBI cuts repo rate by 35 bps to 5.4%, home loans to get cheaper
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Due to downside risks to economic growth, RBI reduced the repo rate or the rate at which it lends to banks by 35 basis points to 5.4% in the August policy review. While reverse repo rate and the bank rate revised to 5.15% and 5.65% respectively. This is the 4th consecutive rate cut since February. This is the first time ever that the central bank didn't go with the usual practice of using multiples of 25.