IPOpulse

RBI Repo Rate

The repo rate is what the RBI charges commercial banks for short-term borrowing — it's the anchor for FD rates, home/car/personal loan rates, and EMIs across India. Set by the Monetary Policy Committee (MPC) roughly every 2 months.

Current repo rate
5.25%
Effective since
5 Dec 2025
Last change
-25 bps
Held for
319 days

MPC decision history

Every rate change since the Monetary Policy Committee was formed in October 2016. Meetings that held the rate unchanged aren't listed individually — see "held for" above.

Effective dateRateChangeNote
5 Dec 20255.25%-25 bps—
6 Jun 20255.50%-50 bpsJumbo 50 bps cut
9 Apr 20256.00%-25 bps—
7 Feb 20256.25%-25 bpsFirst cut after ~2 years held at 6.50%
8 Feb 20236.50%+25 bps—
7 Dec 20226.25%+35 bps—
30 Sept 20225.90%+50 bps—
5 Aug 20225.40%+50 bps—
8 Jun 20224.90%+50 bps—
4 May 20224.40%+40 bpsEmergency off-cycle hike
22 May 20204.00%-40 bpsSecond emergency off-cycle cut — COVID-19
27 Mar 20204.40%-75 bpsEmergency off-cycle cut — COVID-19
4 Oct 20195.15%-25 bps—
7 Aug 20195.40%-35 bpsUnconventional 35 bps cut
6 Jun 20195.75%-25 bps—
4 Apr 20196.00%-25 bps—
7 Feb 20196.25%-25 bps—
1 Aug 20186.50%+25 bps—
6 Jun 20186.25%+25 bps—
2 Aug 20176.00%-25 bps—
4 Oct 20166.25%—First decision under the newly formed Monetary Policy Committee (MPC)

About the repo rate

The repo rate (repurchase rate) is the interest rate at which the RBI lends short-term funds to commercial banks against government securities. It's the RBI's primary tool for controlling inflation and liquidity — raise it to cool an overheating economy, cut it to stimulate borrowing and growth.

Since October 2019, most Indian banks price new floating-rate retail loans (home, auto, personal) using an External Benchmark Lending Rate (EBLR) directly linked to the repo rate — so a repo cut or hike now passes through to your EMI far faster than under the old MCLR regime, typically within one quarter. Fixed deposit rates tend to move in the same direction but with more of a lag, since banks balance FD pricing against their own funding needs.

The MPC — six members, three from the RBI and three external appointees — meets roughly every two months and decides by majority vote. Data on this page reflects the MPC era only (October 2016 onward); rate history before the committee's formation is not shown.

5.25%, effective since 5 Dec 2025.