Repo Rate

April 9, 2025 11:11 AM

RBI cuts repo rate by 25 bps to 6% amid deepening global trade war

The Reserve Bank of India (RBI) on Wednesday cut the repo rate by 25 basis points, reducing it from 6.25 per cent to 6 per cent, in a bid to support the economy amid growing global headwinds stemming from sweeping tariffs and retaliatory duties imposed by US President Donald Trump on several countries, including India. Announcing the decision after the MPC's three-day meeting held on April 7, 8, and 9, RBI Governor Sanjay Malhotra stated, "After a detailed assessment of the evolving macroecon...

February 7, 2025 10:54 AM

RBI cuts repo rate by 25 bps to 6.25% in first policy review

Reserve Bank of India (RBI) Governor Sanjay Malhotra confirmed that the Monetary Policy Committee (MPC) had unanimously decided to reduce the policy rate by 25 basis points (bps), from 6.50% to 6.25%. Malhotra addressed the challenges posed by the global economic landscape, highlighting that while high-frequency indicators suggest resilience and growth in trade, overall global growth remains below historical averages. He said, "Progress on global disinflation is stalling, hindered by services p...

February 7, 2025 9:54 AM

RBI likely to cut repo rate by 25 Bps in Governor Sanjay Malhotra’s first policy move

The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) is set to announce its first monetary policy under new Governor Sanjay Malhotra on Friday. Experts predict that the central bank may reduce the repo rate by 25 basis points (bps) to stimulate economic growth while keeping inflation under control. According to a report by Bank of Baroda, inflationary pressures have eased, primarily due to a decline in the prices of essential vegetables such as tomatoes, onions, and potatoes. Thi...

February 6, 2025 8:35 PM

RBI may cut repo rate by 50 basis points to boost economy: ASSOCHAM

The Reserve Bank of India (RBI) is expected to cut the benchmark policy repo rate, which stands at 6.50 per cent, by at least 50 basis points to support economic growth, a top industry body said on Thursday. To help the economy tide over the crisis following the Covid-19 pandemic, the central bank last reduced the repo rate by 40 basis points to 4 per cent in May 2020. After consulting key stakeholders, the Associated Chambers of Commerce and Industry of India (ASSOCHAM) believes that the Indi...

January 27, 2025 8:13 PM

RBI plans Rs 1.1 lakh crore liquidity infusion in banking system

The Reserve Bank of India (RBI) has announced a plan on Monday to inject an additional Rs 1.1 lakh crore into the banking system through various measures, including open market purchase auctions of Government securities and a variable rate repo auction. Additionally, a $5 billion dollar-rupee swap auction will be conducted to enhance liquidity. This decision follows a review of current liquidity and financial conditions. The open market operations will involve the purchase of Government of Indi...

October 9, 2024 10:48 AM

RBI keeps repo rate at 6.5%, shifts stance to neutral for inflation-growth balance

The Reserve Bank of India (RBI) on Wednesday kept the policy repo rate steady at 6.5% for the tenth time in a row. Following the Monetary Policy Committee (MPC) meeting, RBI Governor Shaktikanta Das announced that the decision was supported by five out of six MPC members. Other key rates also remained unchanged, with the standing deposit facility (SDF) rate at 6.25% and both the marginal standing facility (MSF) rate and the bank rate at 6.75%. Das also highlighted a shift in the RBI's monetary...

September 16, 2024 6:39 PM

RBI keeps repo rate unchanged at 6.5%, ups FY25 GDP forecast to 7.2%

The Reserve Bank of India (RBI) kept the repo rate unchanged at 6.5 percent for the eighth consecutive time on Friday, aiming to bring inflation down to its medium-term target of 4%. The Monetary Policy Committee (MPC), in a majority decision with four out of six members agreeing, opted to hold the repo rate steady. Consequently, the standing deposit facility (SDF) rate remains at 6.25 percent, while the marginal standing facility (MSF) rate and the bank rate remain at 6.75 percent. RBI Govern...

September 16, 2024 3:25 PM

RBI keeps repo rates unchanged at 6.5 percent for seventh consecutive time

The Reserve Bank of India's Monetary Policy Committee (MPC) on Friday kept the key repo rate unchanged at 6.5 per cent for the seventh consecutive meeting, as it focused on reigning in retail inflation that has stayed above its 4 per cent target. The repo rate is the interest rate at which banks borrow funds from the RBI to overcome short-term liquidity mismatches. "It was decided by a majority of 5:1 to keep the interest rate unchanged at 6.50 per cent. Consequently, the Standing Deposit Faci...