RBI Repo Rate Update : RBI's big decision! Repo rate now 5.25%, stock market surge

The Reserve Bank of India, or RBI, has made a major decision regarding the repo rate today, providing relief to the common citizens. Additionally, investors have also received relief. Today, the Reserve Bank of India has made an important decision to cut the repo rate by 25 basis points. RBI Governor Sanjay Malhotra said that the reduction in the repo rate has been implemented immediately. As a result of this decision, the repo rate has now decreased from 5.50% to approximately 5.25%. RBI Governor Sanjay Malhotra provided related information, stating that the reduction in the repo rate will be implemented immediately. Due to this decision by the RBI, citizens' home loan EMIs will decrease. Furthermore, banks will also offer loans at lower interest rates.

RBI Governor Sanjay Malhotra said last month was a big challenge for us, but the coming months will be good in terms of both GDP and inflation. The inflation forecast for the entire year is 2%. In the second quarter, the actual GDP growth was 8.2%. GDP growth is expected to remain at 8% in the first half of this financial year. In this meeting, MPC members unanimously decided to cut the repo rate by 25 basis points. The CRR was kept at 3%, while the SDF rate was kept at 5.25%, the MSF rate at 5.75%, and the bank rate at 5.75%. They informed that RBI has included 1 lakh crore OMO purchases and a 3-year swap of 5 billion dollars in American dollars or Indian rupees, both scheduled for December.

In 2025, the Reserve Bank of India cut the repo rate four consecutive times, with the RBI reducing the repo rate by 25 basis points in February. Subsequently, in April, after another 25 basis points cut in the repo rate, there was the largest cut of the year in June, which was 50 basis points. And now, another 25 basis points cut has been made. Overall, this year the RBI has reduced the repo rate by 125 basis points or 1.25 percent. Before this year's cuts, the repo rate had remained stable twice. However, now the repo rate has come down from 6.50 percent to 5.25 percent. After the repo rate cut, there was also a significant surge in the stock market. Today, the Sensex is trading over 200 points higher at above 85,500, while the Nifty is up by 75 points, trading at 26,110. The Nifty Bank has recorded an increase of 364 points.