RBI cuts repo rate by 25 basis points, changes policy stance to neutral

The monetary policy committee of the Reserve Bank of India today cut the policy interest rate by 25 basis points to 6.25% in a 4-2 decision. The move could spur banks and non-banking finance companies into reducing their lending rates for consumer and home loans, resulting in lower EMIs for borrowers. In another key move, the central bank changed its stance to ‘neutral’ from the earlier ‘calibrated tightening’.