RBI Repo Rate 2026
Reserve Bank of India — Monetary Policy Rate
Repo Rate
6.5%
Reverse Repo
3.35%
CRR
4.5%
SLR
18%
Impact on Home Loan
Rate hike → EMI ↑
₹10L loan: ₹1,000/month ↑ per 1% hike
Impact on FD Rates
Rate hike → FD rates ↑
Banks typically raise FD rates within 3-6 months
Impact on Economy
Controls Inflation
Higher rates → Less borrowing → Lower inflation
Repo Rate History
| Date | Repo Rate | Action | Note |
|---|---|---|---|
| Feb 2024 | 6.5% | Hold | MPC maintained status quo |
| Dec 2023 | 6.5% | Hold | Focus on withdrawal of accommodation |
| Oct 2023 | 6.5% | Hold | Inflation concern persists |
| Aug 2023 | 6.5% | Hold | 4th consecutive hold |
| Jun 2023 | 6.5% | Hold | MPC voted 5:1 for hold |
| Apr 2023 | 6.5% | Hold | First pause after 6 hikes |
| Feb 2023 | 6.5% | Hike +25bp | Inflation management |
| Dec 2022 | 6.25% | Hike +35bp | Global tightening cycle |
| Sep 2022 | 5.9% | Hike +50bp | Aggressive rate hike cycle |
| Aug 2022 | 5.4% | Hike +50bp | Inflation at 7%+ |
| Jun 2022 | 4.9% | Hike +50bp | Emergency off-cycle hike |
| May 2022 | 4.4% | Hike +40bp | Off-cycle emergency meeting |
| Apr 2022 | 4% | Hold | Last hold before hike cycle |
| May 2020 | 4% | Cut -40bp | COVID relief cut #2 |
| Mar 2020 | 4.4% | Cut -75bp | Emergency COVID cut |
| Feb 2020 | 5.15% | Hold | Pre-COVID hold |
| Oct 2019 | 5.15% | Cut -25bp | Growth support |
FAQs — Repo Rate
Repo Rate (Repurchase Rate) is the interest rate at which the Reserve Bank of India (RBI) lends short-term money to commercial banks. When banks need funds, they borrow from RBI by pledging government securities. Currently at 6.5%.
Most home loans in India are linked to external benchmarks like the RBI Repo Rate (EBLR). When RBI hikes the repo rate, banks increase their lending rates, making home loan EMIs higher. A 25 bps (0.25%) hike on ₹50 lakh loan = ~₹800/month increase.
Reverse Repo Rate (3.35%) is the rate at which RBI borrows money from commercial banks. It acts as a floor for short-term interest rates in the economy.
Cash Reserve Ratio (CRR = 4.5%) is the minimum percentage of a bank's total deposits that must be held as cash reserves with the RBI. Higher CRR reduces money available for lending.
RBI's Monetary Policy Committee (MPC) meets every 2 months (6 times a year) to review and decide on the repo rate based on inflation, growth, and global factors.
Current Rates At-a-Glance
Repo Rate6.5%
Reverse Repo Rate3.35%
Marginal Standing Facility6.75%
Bank Rate6.75%
CRR4.5%
SLR18%
Next MPC Meeting
Apr 5-7, 2024
Monetary Policy Committee
Expectation: Hold