RBI Repo Rate: According to a report published on Tuesday, the Reserve Bank will further lower the repo rate by 25 basis points during the December meeting of the Monetary Policy Committee (MPC).
RBI Repo Rate: There is excellent news if you’ve been considering purchasing a home. Installments will be less expensive in the future. The repo rate could be lowered once more by the Reserve Bank of India (RBI).
According to a report issued on Tuesday, the Monetary Policy Committee (MPC) will lower the repo rate by an additional 25 basis points during its December meeting. As a result, by the end of 2025, the repo rate will be 5.25 percent. The Reserve Bank is unlikely to alter the repo rate at the next two MPC sessions, considering the recent decline in inflation.
Disclosure in HSBC report
According to the HSBC Global Research report, it is anticipated that the repo rate would remain unchanged during the August and October meetings. We do, however, think that the Reserve Bank will ultimately lower interest rates by 25 basis points at its December meeting, bringing the repo rate down to 5.25 percent by the end of 2025.
Inflation decreased in June
From 2.8 percent in May to 2.1 percent in June, the Consumer Price Index-based inflation rate decreased. Cheaper food goods have contributed to this inflation fall and are predicted to continue to do so. The average inflation rate for the second quarter of 2025, according to the research, will be 2.7 percent, which is less than the RBI’s forecast of 2.9 percent.
Governor Sanjay Malhotra said this
In an interview, Reserve Bank Governor Sanjay Malhotra discussed the repo rate and stated that the rate decline is due equally to a slowdown in growth and declining inflation. If we talk about in other words, inflation and economic growth will determine the repo rate decision made at the upcoming MPC meetings.
In February and April of this year, the Reserve Bank first lowered the repo rate by 0.25 basis points. As a result, it dropped to 6.0 percent. This was followed by the announcement in June of a 0.50 basis point reduction in the repo rate, which caused it to drop from 6.00 percent to 5.50 percent.
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