📝 Introduction: Understanding Repo Rate Today and Its Impact
Are you wondering what the repo rate today is and how it affects your personal finances, home loan EMIs, or the Indian economy? The RBI repo rate plays a crucial role in shaping the country’s economic conditions. Whether you’re a borrower, investor, or just curious about economic trends, staying updated with the current repo rate is essential.
In this blog, we’ll break down everything about repo rates — from its meaning, latest updates, historical trends, and its impact on inflation and loan interest rates. Let’s dive into how the Reserve Bank of India’s repo rate decisions influence your daily life and long-term financial goals.
📌What is Repo Rate?
Repo rate (short for Repurchase Rate) is the interest rate at which the Reserve Bank of India (RBI) lends short-term money to commercial banks. It is a key monetary policy tool used by the RBI to control:
- Liquidity in the economy
- Inflation levels
- Credit availability
Example:
If RBI sets the repo rate at 6.50%, banks borrow money from RBI at this rate. When the repo rate increases, borrowing becomes expensive, and loan interest rates may rise.
📢RBI Repo Rate Today – June 2025
| Date | Repo Rate (%) | Status |
|---|---|---|
| June 6, 2025 | 6.50% | Unchanged |
The current repo rate is 6.50%, as per the latest RBI Monetary Policy Committee (MPC) update on June 6, 2025.
👉 Check official RBI announcement
📊 Repo Rate History (2015–2025)
| Year | Repo Rate (%) |
|---|---|
| 2015 | 7.75 |
| 2016 | 6.50 |
| 2017 | 6.25 |
| 2018 | 6.50 |
| 2019 | 5.40 |
| 2020 | 4.00 (pandemic low) |
| 2021 | 4.00 |
| 2022 | 5.90 |
| 2023 | 6.50 |
| 2024 | 6.50 |
| 2025 | 6.50 (current) |
💰 How Repo Rate Affects Loans and EMIs
- When repo rate increases, banks pay more to borrow from RBI → They increase loan interest rates → Your EMIs increase.
- When repo rate decreases, borrowing becomes cheaper → Banks may reduce loan rates → Your home loan EMIs go down.
📌 Loan Types Affected:
- Home Loans
- Personal Loans
- Auto Loans
- Business Loans
Pro Tip: Choose floating-rate loans to benefit from repo rate cuts.
🔁 Repo Rate vs Reverse Repo Rate
| Feature | Repo Rate | Reverse Repo Rate |
|---|---|---|
| Definition | Rate at which RBI lends to banks | Rate at which RBI borrows from banks |
| Purpose | Injects liquidity | Absorbs liquidity |
| Current (2025) | 6.50% | 3.35% (approx.) |
| Impact on economy | Increases money supply | Reduces money supply |
📈 Impact of Repo Rate on Inflation
- High repo rate → Costly loans → Less spending → Lower inflation
- Low repo rate → Cheap loans → More spending → Higher inflation
RBI uses repo rate to maintain balance between growth and price stability.
❓ FAQs
1. What is the current RBI repo rate today?
✅ The current repo rate is 6.50%, unchanged as of June 6, 2025.
2. Who decides the repo rate in India?
🧑⚖️ The RBI’s Monetary Policy Committee (MPC) meets every two months to decide repo rate.
3. How does repo rate affect fixed deposit (FD) rates?
📉 Generally, FD rates increase when repo rate rises.
4. Will my home loan EMI increase if repo rate increases?
✔️ Yes, especially if you have a floating interest rate home loan.
5. Where can I check the official repo rate updates?
🔗 Visit the official RBI website
🧭 Conclusion
The repo rate today is a critical economic indicator. Whether you’re a student, investor, or borrower, knowing the RBI repo rate helps you make informed financial decisions.
In 2025, repo rate today with the repo rate staying at 6.50%, it signals RBI’s cautious stance to balance inflation and growth. Keep track of future policy meetings and adjust your loan/FD/investment strategies accordingly.
🔗 Suggested Internal Links
- Home Loan EMI Calculator
- SIP vs FD: Where to Invest in 2025
- Top Mutual Funds for 2025
- What is Inflation: A Beginner’s Guide
🔗 Suggested External Links
https://www.rbi.org.in— Official RBI site (repo rate source)https://www.moneycontrol.com/— Finance news and repo updateshttps://www.investopedia.com/— Repo Rate meaning and economics