The Reserve Bank of India (RBI) on Thursday reduced repo rate by 25 basis points (bps) to 5.75 per cent. This is the third straight reduction in the rates in 2019.

The move will likely bring down the loan EMIs (equated monthly installments). The last time the Reserve Bank moved this quickly to lower rates was in 2013 to revive the moribund economy from growth rates that had slipped to a decade low.

RBI had reduced its repo rate — the rate at which it lends to banks — from 6.5 per cent to 6 per cent in two stages this year. The weighted average marginal cost lending rate of banks has, however, risen from 10.38 per cent in January to 10.42 per cent in April 2019.

Earlier, the repo rate was at 5.75 per cent in July 2010.