RBI's Bank Rate Policy
RBI's Bank Rate Latest Update
Latest Release
Feb 7, 2025
Actual
6.5%
Previous
6.75%
Current Bank Rate – The current Bank rate is 6.5%.
The RBI reduced the bank rate by 25 basis points on 7th Feb 2024.
Historical RBI's Bank Rate Chart
Bank Rate Chart - Historical & Current Trends
Analyze Bank Rate Changes Over Time
RBI's Bank Rate overview
The Bank Rate is the rate that is charged by the RBI (central bank) while giving loans to commercial banks. It provides a facility in which banks do not require to keep collateral with the RBI while borrowing money from it. Banks facing a shortage of funds can borrow from the central bank at this rate.
The RBI changes the bank rate after evaluating the economic conditions. The main purpose is to control inflation and stabilize economy.
RBI's Bank Rate Change Impact
Increase Bank Rate: It makes borrowing expensive for banks and banks increase loan interest rates, making home, car, and business loans costlier. Moreover, this also helps control inflation by reducing excess money in circulation.
Decrease Bank Rate: It makes banks get cheaper loans from the RBI which makes loan interest rates for businesses and individuals decrease, encouraging them to borrow. Moreover, this helps boost economic growth during slowdowns.
Related Inflation and Price Indicators
Important
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