Repo Rate

Repo Rate Cut: The Reserve Bank of India (RBI) has reduced the repo rate by 25 basis points to 6.00% as of April 15, 2025.

RBI’s Tool: The repo rate is the interest rate at which the RBI lends money to commercial banks against government securities. It’s a key tool for managing liquidity and controlling inflation.

Lower Borrowing Costs for Banks: The repo rate cut lowers borrowing costs for commercial banks.

Impact on FD Rates: Banks are likely to reduce Fixed Deposit (FD) interest rates in response to the repo rate cut. Existing FDs remain unaffected till maturity.

Increased Credit Flow: Lower interest rates are expected to encourage borrowing by businesses and consumers, boosting investment and consumption.

Boost to Key Sectors: Sectors like real estate and infrastructure may benefit from more affordable financing.

Support Against Global Uncertainties: The RBI’s move

Current Reverse Repo Rate: The current reverse repo rate is 3.35% (as of April 15, 2025).