Bank of Baroda, has announced the reduction in its Repo Linked Lending Rate by 50 basis points following the policy rate cut announced by the Reserve Bank of India (RBI).

This move will make borrowing cheaper, which can encourage more people to take loans for homes, cars, or businesses. The revised rates came into effect from June 7, the public sector bank said in a statement. With this the Bank's Repo Linked Lending Rate now stands at 8.15 per cent. Several banks have reduced the interest rates as per the publicly available information.

The move came after the Monetary Policy Committee of RBI on Friday announced to reduce the policy interest rate by 50 basis points, to 5.5 per cent. Speaking after the MPC decision, RBI Governor Sanjay Malhotra mentioned that the reason for repo cut was due to softened inflation, with near-term and medium-term projections aligning within RBI’s range, and soft food inflation.

RBI Governor Sanjay Malhotra mentioned that the repo cut was due to softened inflation, with near-term and medium-term projections aligning within the RBI’s range, and soft food inflation” for better clarity

Consequently, the Standing Deposit Facility Rate, which is the SDF Rate, shall stand adjusted to 5.25 per cent, and the Marginal Standing Facility MSF Rate and the Bank Rate shall stand adjusted to 5.75 per cent.

Published on June 8, 2025