What is Repo Rate?
Repo rate is the interest rate at which the RBI lends money to commercial banks when they face a shortfall.
Repo rate is the interest rate at which the RBI lends money to commercial banks when they face a shortfall.
RBI uses repo rate to control inflation and manage the money supply in the economy. It's a key tool of monetary policy.
Loans become costlier, reducing spending and borrowing. This helps control inflation in the economy.
Borrowing becomes cheaper. More loans = more spending = economic growth. RBI does this to boost the economy
An increase in repo rate may raise your home loan EMI. A decrease can reduce your EMI or loan interest rate.
Repo rate = RBI lends to banks. Reverse repo rate = Banks park funds with RBI. Both help regulate liquidity in the system.
As of April 2025, the repo rate stands at 6.00% Always check the latest update from RBI.
RBI changes repo rate in response to inflation, economic conditions, and growth outlook during its bi-monthly reviews.
Stay tuned for the Monetary Policy Committee (MPC) meetings—usually held every two months by RBI.
Repo rate affects your loan EMIs, savings interest, and the economy at large. It’s RBI’s way of steering the economy.