RBI MPC Meeting 2025: Amid global turmoil sparked by Donald Trump’s renewed tariff war, the Reserve Bank of India (RBI) has announced a major decision in its crucial Monetary Policy Committee (MPC) meeting—cutting the repo rate by 0.25 percentage points, offering significant relief.

New Repo Rate: 6%

With this announcement, the repo rate has been reduced from 6.25% to 6%. This means that in the coming days, loans will become cheaper, and EMIs are expected to decrease. RBI Governor Sanjay Malhotra shared this update.

Previous Rate Cut in February

Notably, this is the second consecutive rate cut by the RBI this year. Earlier, during the final financial meeting of FY 2024-25 held in February, the RBI had reduced the repo rate from 6.50% to 6.25%—the first such move in nearly five years.

What Does a Repo Rate Cut Mean?

A reduction in the repo rate allows banks to lower interest rates on loans such as housing and auto loans. As borrowing becomes cheaper, demand for housing is expected to rise, encouraging more people to invest in real estate.