The Reserve Bank of India has issued the Monetary policy update on June 6th 2025 and announced the RBI Repo Rate Reduce 2025 will be reduced by 50 basis points to 5.50 percent. The aim of reducing the RBI Repo rates to fulfill the objective of achieving the medium term target for the consumer price index as well as aims to stimulate economic growth in various sectors. From June 2025, the RBI has changed the Repo rates from the various sectors so it can affect the commercial banks and loans schemes. It also made impacts in the Fixed Deposits, EMIs, Home Loans, Personal Loans and other kinds of loans.
RBI Repo Rate Reduce 2025
The RBI Repo Rate Reduce 2025, RBI has cut the Repo Rates three consecutive years which is 50 basis points to 5.5% so the investors can also get the effects from these decisions. The FD investors can get the lower interest rates after the reducing repo rates in 2025. It’s also impacted as a negative or positive for the multilateral agencies and their growth and trade projections. After reducing the repo rates, the market’s volatility has also increased with dollar index and crude oil, Gold price. This RBI repo rate reductions will also be affected by economic activity, investment activity, trade policies and agricultural prospects.
New RBI Repo Rates 2025: Overview
| Name of the article | RBI Repo Rate Reduction 2025 |
| Changes announced by | RBI |
| Releasing organizations | Press Information Bureau, Government of India |
| Benefits | Focus on the various factors |
| Beneficiaries | Indian citizens |
| Objectives | Increased the GDP growth |
| Official website | https://www.pib.gov.in/ |
How Much RBI Repo Rate Reduced in 2025?
The RBI New Repo Rates 2025 and this repo rates will be affected by the Loans borrowing, deposits, returns, EMIs and other several factors. The RBI has reduced the minimum of 5.50% repo rates and this also reduced the FDs interests and other kinds of interests rates. The RBI repo rates are also given below so the beneficiaries can also see these rates before investments.
| Timeline | Repo rates |
| June 2025 | 5.50% |
| April 2025 | 6.00% |
| February 2025 | 6.25% |
| December 2024 | 6.50% |
| October 2024 | 6.50% |
| August 2024 | 6.50% |
| June 2024 | 6.50% |
| April 2024 | 6.50% |
Check Current Repo Rates of the Banks 2025
The 5.50% repo rates will have higher effects on the various banks sectors because the RBI has released the money in the lower costs. According to the experts, if the banks can borrow the money at the lowest rates so it will be given the lower interest rates. It means that the loan, EMIs, deposits, returns and other several factors can also be affected. The affected areas of the banks is also given below –
| Banks | Affected areas |
| Bank of Baroda | Reduced RLLR by 50 basis points |
| HDFC | MCLR rates down by the 10 basis points to 8.90% |
| SBI | FD rates dropping from 7% to 6.5% |
RBI Repo Rate Reducing Effects On The Various Sectors
With reducing the Repo Rates by RBI, it can be affected by various factors such as SDF rates, MSR rates, interest rates, LAF, bank rates and open market operations so the beneficiaries can also select their FDs, schemes and mutual funds for the short term. The repo rate will be effective for the investment risks and the investors have not got more investment amounts in higher returns. The beneficiaries can monitor the inflation and the risks before the investments and they can also compare the risks as well as invested in the short tenures.
FAQs Related To The RBI Repo Rate Reduce 2025
If any beneficiaries already have the loans so can he pay their EMIs form the new repo rates?
No, these new Repo rates are implemented by June 2025 so they are not paid the new EMIs rates.
Will the banks cut the interest rates of the FDs after Repo rates reductions?
Yes, the banks are cutting the interest rates of the FDs after Repo rates reductions.
Can the Repo Rates make effects on the home, car and personal loans?
Yes, the Repo rates make the effects on the home, car and personal loans.
