Reserve Bank Makes Major Decision on Repo Rate: Kept at 5.25%; EMIs Will Not Rise

RBI Repo Rate: The Reserve Bank of India announced a major decision regarding the repo rate at 10 AM today. The repo rate remains unchanged at 5.25%. You can find detailed information about this here.

RBI Repo Rate: A significant decision was taken following the meeting of the Reserve Bank of India's Monetary Policy Committee. The RBI has maintained the repo rate at 5.25%. Experts from the real estate and financial sectors welcomed the decision but expressed concerns regarding crude oil prices and inflation.

What is the Repo Rate?

The repo rate is the interest rate at which the country's central bank—the Reserve Bank of India—lends money to commercial banks. For instance, the current repo rate is 5.25%. Often, when inflation rises in the country, the RBI increases the repo rate. This makes borrowing more expensive for banks, prompting them to raise loan rates for customers, which in turn reduces the flow of money in the market.

What is the past record?

The RBI has kept the repo rate steady at 5.25% across several recent meetings. Prior to this, the repo rate had been reduced from 6.50% to 5.25%. Looking at the record from 2022 to 2025, the rate has been adjusted approximately 10 times. Repo rate hike phase (May 2022 to February 2023)-

May 2022: +0.40% (reached 4.40%)
June 2022: +0.50% (reached 4.90%)
August 2022: +0.50% (reached 5.40%)
September 2022: +0.50% (reached 5.90%)
December 2022: +0.35% (reached 6.25%)
February 2023: +0.25% (reached 6.50%)

Repo rate cut phase (Year 2025)-

February 2025: -0.25% (reached 6.25%)
April 2025: -0.25% (reached 6.00%)
June 2025: -0.50% (reached 5.50%)
December 2025: -0.25% (reached 5.25%)

Who is most affected by a repo rate hike?

Whenever the RBI raises the repo rate, the most significant and direct impact is on loan borrowers and the banking sector. Individuals who have taken home loans at floating interest rates are also affected.