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RBI cuts rates by 25 bps


The reduction in the repo rate will lower cost of funds for banks and is a signal to them to reduce lending rates. For individual borrowers, home loans and auto loans rates would come down.
Announcing the rate cut, RBI Governor Raghuram Rajan said that there was scope for further cuts if the monsoon was better than expected or if the Government took measures to offset impact of monsoon.
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