The Reserve Bank of India’s Monetary Policy Committee (MPC) has kept the benchmark repo rate unchanged at 5.25 per cent across its most recent policy reviews this year, choosing to hold rather than cut further after a run of reductions earlier in the cycle.
How we got here
The repo rate the rate at which the RBI lends to commercial banks was cut in stages from 6.5 per cent, with cumulative reductions of around 125 basis points taking it down to 5.25 per cent by early 2026. Since then, the MPC has voted to hold the rate steady at consecutive reviews, keeping its policy stance neutral rather than signalling further cuts or hikes.
Alongside the repo rate, the RBI has kept its other corridor rates unchanged: the Standing Deposit Facility (SDF) rate at 5.00 per cent and the Marginal Standing Facility (MSF) and Bank Rate both at 5.50 per cent.
Why it matters to you
The repo rate is the base on which banks price loans and deposits. A steady rate generally means EMIs on floating-rate home, auto and personal loans are unlikely to move much in the near term, and fixed deposit rates are also likely to hold at current levels rather than rise further.
The RBI has pointed to resilient domestic demand, improving investment activity and manageable inflation as reasons for holding rather than cutting again, while flagging global uncertainty as a factor it continues to watch.
What to watch next
The MPC meets roughly every two months. Since this article was prepared, at least one further review may have taken place check the RBI official announcements for the most current repo rate before making a borrowing or investment decision based on it.
