RBI’s Repo Rate Policy

RBI's Repo Rate Latest Update

Latest Release

Feb 7, 2025

Actual

6.25%

Previous

6.5%

The RBI’s Repo Rate was cut to 6.25% in the latest monetary policy update, impacting loan rates and economic growth.

On Feb 7th, 2025, The RBI reduced the repo rate by 0.25 basis points keeping it at 6.25%. This is a significant change by the RBI after seeing India’s growth and GDP data.

Also Read : Reverse Repo Rate

Historical RBI's Repo Rate Data Chart

Repo Rate Chart - Historical Repo Rate Data & Trends

India Repo Rate Chart (RBI) - Historical & Current Trends

Analyze RBI Repo Rate Changes Over Time

Source: Reserve Bank of India (RBI)

RBI Repo Rate overview

Repo Rate is the interest rate at which the Reserve Bank of India (RBI) lends money to commercial banks (both govt and private) when they need funds.

So, how does the Repo Rate work?
When banks need money, they approach the RBI and borrow by using govt securities as collateral. They (banks) pay interest (according to the repo rate) on the borrowed amount to the RBI. Therefore, when the repo rate changes, it affects loan interest rates, inflation, and economic growth.

RBI Repo Rate Change Impact

What happens when RBI cuts the Repo Rate:

  • Banks can borrow money more easily from the RBI.
  • Loan interest rates drop, and it makes borrowing cheaper for consumers.
  • More and more people take loans, increasing spending and stimulating the economy.

What happens when RBI increases the Repo Rate:

  • Banks pay more to borrow from the RBI, making loans expensive.
  • Fewer people take loans, reducing the money supply in the market.
  • Helps control inflation by slowing down excessive spending.

Related Inflation and Price Indicators

Important

If you notice any discrepancies in the data or find any inaccuracies, please let us know. We will review and correct them as soon as possible.

Other Indicators

Inflation and Price Indicators
  • CPI Inflation
  • WPI Inflation
  • Education Inflation
  • CPI Housing Utilities
  • Food Inflation
  • Health Inflation
  • WPI Food Index
  • WPI Fuel & Power
  • WPI Manufacturing
  • Inflation Expectations
  • GDP
  • Full Year GDP Growth
  • GDP per Capita
  • GDP from Agriculture
  • GDP from Construction
Scroll to Top