New Delhi: In what could bring major relief for lakhs of home loan borrowers of State Bank Of India (SBI), the bank has cut home loan interest rates following RBI’s repo rate revision in its latest monetary policy.
SBI has announced that it is reducing External Benchmark-Based Lending Rate (EBLR) by 25 bps effective from 15 February 2025.
The Reserve Bank of India (RBI) had in its recently concluded monetary policy on February 7 announced reduction in interest rate after a gap of nearly five years.
This was new RBI Governor Sanjay Malhotra’s first Monetary Policy after he took charge at the central bank, succeeding Shaktikanta Das.
The six-member Monetary Policy Committee (MPC) meeting that began on Wednesday, announce the decision to reduce the repo rates by 25 basis points to 6.25 percent.
Governor Malhotra said that Inflation targeting has served Indian economy very well, adding that, average inflation has remained lower since introduction of monetary policy framework.
RBI had last reduced the repo rate by 40 basis points to 4 per cent in May 2020, following the outbreak of the Covid pandemic and subsequent lockdown.
Two years later, in May 2022 RBI started a rate hike cycle in view of the Russia-Ukraine war only to hit pause button on interest rates in May 2023.