What Are Repo And Reverse Repo Rates And How Your Loan EMI Will Get Cheaper l ABP Uncut

The Reserve Bank has announced reduction in lending rates even as it extended the moratorium period for interest payments on term loans. The Monetary Policy Committee (MPC) of the RBI has slashed the repo rate by 40 basis points to 4 per cent from 4.40 per cent. Consequently, the reverse repo rate has automatically been reduced to 3.35 per cent from 3.75 per cent. Here's how it will impact your EMIs and make them cheaper.