Repo Rate
RBI slashes repo rate by 25 basis points — big relief coming for borrowers!
Mumbai/IBNS: The Reserve Bank of India (RBI) on Friday slashed the repo rate by 25 basis points to 5.25%, making loans cheaper for borrowers, media reports said.
RBI Governor Sanjay Malhotra announced the reduction — from 5.50% to 5.25% — during a press conference following the three-day meeting of the Monetary Policy Committee (MPC).
This is the second rate cut this year. In June, the repo rate was lowered from 6% to 5.5%.
The latest cut comes at a time when the Indian rupee has fallen to an unprecedented low, prompting the central bank to ease borrowing costs and support economic activity. The reduction is expected to bring relief to retail borrowers through lower EMIs.
The announcement follows strong economic data, with India recording a six-quarter high GDP growth of 8.2% in the July–September quarter, according to official figures released last month.
“Real GDP has been estimated to grow by 8.2% in Q2 of FY 2025-26, compared to 5.6% during the same period last year (Q2 FY 2024-25),” the government said in a statement.
Real GDP (at constant prices) in Q2 FY 2025-26 is estimated at ₹48.63 lakh crore, up from ₹44.94 lakh crore a year earlier. Nominal GDP (at current prices) rose 8.7% to ₹85.25 lakh crore, compared to ₹78.40 lakh crore in Q2 FY 2024-25.
Real GVA grew 8.1% to ₹44.77 lakh crore, while nominal GVA rose 8.7% to ₹77.69 lakh crore in Q2 FY 2025-26.
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