RBI on Repo Rate: The Reserve Bank of India (RBI) has made a big announcement today, December 5, 2025, by cutting the repo rate. Governor Sanjay Malhotra announced that the repo rate was reduced by 0.25 percent. Now the repo rate has come down to 5.25%. With this decision, the EMI burden on loan holders will be reduced to some extent.
The decision to cut the repo rate was taken in the meeting of the Monetary Policy Committee of RBI held from December 3 to 5. This is the fourth time in 2025 that the repo rate has been reduced.
Governor Sanjay Malhotra gave information
RBI Governor Sanjay Malhotra informed about the decision to cut repo rate. “The MPC (Monetary Policy Committee) voted unanimously to reduce the policy repo rate by 25 basis points to 5.25% with immediate effect,” he said. The common man will get great relief from the reduction in repo rate. This will have a direct impact on EMI, home loan interest rates, personal loans and car loans.
Repo rate is the rate at which banks take loans from RBI. Decreasing repo rate makes it cheaper for banks to take loans. Banks can also offer cheap loans (Home Loan, Car Loan etc.) to customers.
Repo rate has been cut thrice this year
Before this, RBI has already cut the repo rate 3 times this year. First of all, in February 2025, the repo rate was reduced by 25 basis points. This was the first relief after 5 years. After this the repo rate became 6.25%. At the same time, there was a change in the repo rate again in the month of April. A further reduction of 25 basis points was made in this. Then in June also the central bank unexpectedly cut it by 50 basis points. Due to this the repo rate came down to 5.5%. Now after a reduction of 25 basis points, the repo rate has been reduced to 5.25%.
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