Loan EMIs are set to get cheaper as RBI cuts repo rate by 40 bps to 4 per cent. "The repo rate cut by 40 basis points from 4.4 % to 4%. Reverse repo rate stands reduced to 3.35%," RBI Governor Shaktikanta Das said in a press conference on Friday.
"We must have faith in India's resilience to overcome all odds", the RBI Governor said.
On March 27, RBI had slashed the repo rate by 75bps to enabling the banks to lower their lending rates and deposit rates. Also, in April, RBI had cut the reverse repo rate to 3.75% to discourage banks from parking idle funds with them.
"India's foreign exchange reserves have increased by 9.2 billion during 2020-21 from 1st April onwards. So far, up to 15th May, foreign exchange reserves stand at 487 billion US dollars," the RBI Governor further added.