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Repo Rate: RBI may cut the repo rate by 0.25%, making home loans and EMIs cheaper. This will ease financial pressure on lenders, allowing more people to fulfill their homeownership dreams and also boost economic growth.

Repo Rate: December, the last month of the year, brings hope. As the end of 2025 approaches, there may be good news for banks and home loan customers. The Reserve Bank of India (RBI) may again cut the repo rate. It is expected that the RBI may announce a cut of 25 basis points, or 0.25 percent. If this happens, loan EMIs will decrease. The RBI's Monetary Policy Committee is scheduled to meet in the first week of December, where several important decisions, including the repo rate, will be taken. The repo rate cut will also lead to a decline in interest rates on home loans, auto loans, and personal loans.

When will the decision be made?

The RBI's Monetary Policy Committee meeting will begin on December 3rd and conclude on December 5th. The decisions taken at this meeting will be announced by Reserve Bank Governor Sanjay Malhotra at 10 am on December 5th. Information on a possible repo rate cut will be made public on the same day.

Current Status of the Repo Rate and Possible Reductions

The RBI began reducing the repo rate in February last year. Before halting rate cuts in August, the central bank reduced the repo rate several times, totaling 100 basis points. Currently, the repo rate is stable at 5.5 percent. Experts believe that the RBI may cut the repo rate by 25 basis points in its upcoming meeting, bringing it to 5.25 percent. This will provide significant relief to borrowers and will also help control inflation, which will be beneficial for ordinary consumers.

Impact of Reduction in Inflation and GST Reduction

According to Dharmakirti Joshi, Chief Economist at CRISIL, the decline in food inflation has helped bring core inflation below the RBI's target range of 2-6%. He added that core inflation, excluding gold, was at 2.6% in October, a major reason for which was the GST reduction.

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