RBI Governor Shaktikanta Das said the decision to change the policy stance was unanimous
In a surprise move, the Reserve Bank of India (RBI) on Thursday reduced the repo rate by 25 basis points or 0.25 per cent. The central bank also changed its policy stance to "neutral" from "calibrated tightening". The repo rate - which is the key interest rate at which the RBI lends short-term funds to commercial banks - now stands at 6.25 per cent. The cut in repo rate may lead to lower EMIs for home and auto loan borrowers, say analysts. The central bank had last lowered the repo rate in August 2017. The government said the policy action would aid economic growth and employment opportunities.