The Reserve Bank of India (RBI) concluded its Monetary Policy Committee meeting on Wednesday, and the committee led by RBI Governor Sanjay Malhotra has unanimously decided to maintain the Repo Rate at 5.25%. Since December 2025, the repo rate has remained unchanged from 5.25%.
The repo rate is the interest rate at which the RBI lends short-term funds to commercial banks against government securities.
When the repo rate increases, borrowing becomes more expensive for banks, which may lead to higher interest rates on loans like personal, car, or home loans. Conversely, a lower repo rate reduces borrowing costs, allowing banks to offer loans at cheaper rates.
The RBI uses the repo rate as a key tool to manage inflation, regulate money flow, and maintain overall economic stability.
