On April 9, 2025, the Reserve Bank of India announced a cut of 25 bps (basis points) in the repo rate. Earlier it was 6.25%, now after this reduction the repo rate has come to 6.00%. This change will take place from the immediate effect.
This decision was taken in the first Monetary Policy Committee (MPC) of FY26. The MPC met on the 7th, 8th, and 9th of April to decide about it and other factors.
This announcement was made by the Governor of RBI, Shri Sanjay Malhotra at 10 AM. It has been announced due to global trade tensions that are currently affecting the markets of many countries of the world including India.
Monetary Policy Statement by Shri Sanjay Malhotra, RBI Governor- April 09, 2025, 10 am https://t.co/0OCWkvfgc3
— ReserveBankOfIndia (@RBI) April 9, 2025
It has been announced that the post-monetary policy press conference will be held at 12 noon.
It is a second consecutive deduction in the repo rate followed by an earlier 25 bps reduction in February 2025.
The repo rate is generally the rate at which the RBI (Reserve Bank of India) lends money to commercial banks. This in turn helps in enabling it to offer cheaper loans to its customers for home loans, vehicle loans, etc.
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