The repo rate is one of the most powerful tools the Reserve Bank of India (RBI) uses to manage inflation and economic growth. Every time the repo rate changes, it impacts interest rates on loans and deposits across the country. Whether you're repaying a home loan or planning a big financial decision, tracking these changes can help you make smarter money choices.
Let’s take a look at the complete timeline of RBI repo rate updates for the financial year 2025-26, along with the reasons behind each move and what it could mean for borrowers and investors.
What Is the Repo Rate?
The repo rate is the interest rate at which the RBI lends money to commercial banks. A higher repo rate means borrowing becomes more expensive, which helps control inflation. A lower rate makes borrowing cheaper, encouraging spending and investment in the economy.
RBI Repo Rate Timeline: FY 2025-26
Here’s how the RBI moved the repo rate during each Monetary Policy Committee (MPC) meeting in the financial year 2025-26:
April 2025 – No Change
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Repo Rate: 6.50%
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The RBI decided to keep the rate steady amid manageable inflation and ongoing global uncertainties.
June 2025 – Hike of 25 Basis Points
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Repo Rate: 6.75%
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Rising core inflation and pressure from global commodity prices led to a cautious hike.
August 2025 – No Change
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Repo Rate: 6.75%
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Even though inflation had started easing, the RBI maintained the rate to monitor economic conditions more closely.
October 2025 – Hike of 25 Basis Points
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Repo Rate: 7.00%
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Strong consumer demand during the festive season and persistent inflation in the services sector pushed the RBI to act.
December 2025 – No Change
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Repo Rate: 7.00%
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A pause was seen as necessary to evaluate the impact of earlier hikes. Falling food prices supported this decision.
February 2026 – Cut of 25 Basis Points
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Repo Rate: 6.75%
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Signs of slowing economic activity and a drop in inflation allowed the RBI to reduce rates slightly.
March 2026 – No Change
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Repo Rate: 6.75%
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The RBI preferred to wait and observe the effects of the February cut before making further moves.
What This Means for Home Loan Borrowers
If your home loan is linked to the repo rate, any increase or decrease directly affects your EMIs. During 2025, EMI burdens increased for many borrowers due to the rate hikes in June and October. However, the February 2026 cut offered some relief.
For those with fixed-rate home loans, there was no impact during this period, but new loans became costlier during the mid-year hikes and slightly cheaper again in early 2026.
Final Thoughts
The RBI’s repo rate decisions in 2025-26 reflect a cautious balancing act between curbing inflation and supporting growth. For everyday borrowers and investors, these changes underline the importance of staying informed and being prepared to adjust financial plans as needed.
Tracking the repo rate isn't just for economists—it's for anyone who wants to make better financial decisions in a changing economy.
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