RBI cuts interest rate by 0.5% to boost growth

In a big boost to the economy and borrowers, the Reserve Bank today cut interest rate by 0.50 per cent and relaxed norms for home loan seekers.

In its monetary policy review, RBI reduced the key rate (repo) by 50 basis points from 7.25 per cent to 6.75 per cent with immediate effect.

The central bank cut the GDP forecast to 7.4 per cent for the current fiscal to 7.6 per cent while projecting retail inflation at 5.8 per cent for January.