The RBI cut benchmark rates by 25 basis points (bps) on 4 October, bringing down the repo rate from 6.5% to 6.25%. What does this mean for you the investor or borrower?
For borrowers
RBI Governor Urjit Patel has expressed disappointment over the low transmission of earlier rate cuts by banks and promised to review the marginal cost lending rate (MCLR) mechanism of arriving at lending rates. This time too, banks have only made small cuts in lending rates.
