Banking News India: Have you heard that the RBI repo rate of India will undergo some changes in 2025? Read on this news site all about the RBI repo rate cut, IDFC Bank share price, home loan interest rate and more.
Before you read the full latest repo rate cut news, know the meaning of repo rate first.
What is the RBI repo rate?
The repo rate is essentially the interest rate at which the Reserve Bank of India lends money to commercial banks for a short period. In other terms, it can also be considered a key tool of the RBI to manage liquidity, control inflation, and influence economic growth.
What happened to the RBI repo Rate recently?
In June 2025, the RBI repo rate cut occurred, which may lead to a lowering of the EMI for home loan borrowers, a reduction in Fixed deposits to investors, etc. This major cut happened after the RBI MPC meeting held, and the RBI governor, Shaktikanta Jha Malhotra, declared a 50 BPS repo rate cut i.e up to 5.50 per cent. This was actually higher than expected repo rate cut after the MPC meetings held. This also led reduction of the central bank cash reserve ratio CRR by 100 bps.
Experts on financial analysis stated this could impact the home loan borrowers and FD ( fixed deposit) Account holders in India. It also mentions that it could bring relief to the home loan borrowers as the Monthly EMI may come down. It also stated a sum of Rs 2000 will be lower for those who take a loan of Rs 50 lakhs for 20 years.
On this, the director of the RPS Group said if a person took a home loan of Rs 30 lakhs for 20 years, then it would decrease the EMI by about ₹1176 per month. What is more interesting to see and benefits to the borrower is that they can reduce the length of the tenure as well as the Interest savings.
For the home loan borrowers, Pankaj Mathpal The MD and CEO of the Optima money managar also stated that it was in 2025 February and April, the repo rate cut was 25 bps and again Reduction to 100 bps in 2025 may help those who delayed buying home to buy home with relief of Rs 3800 to Rs 4000 in the EMI for home loan of ₹ 50 lakhs for 20 years.
Highlights of the RBI MPC meet 2025
The announcement by Governor Sanjay Malhotra after the meeting of the RBI’s June monetary policy stated the following
- Repo rate cut by 50 BPS to 6.5%
- Cash reserve ratio reduced to 100 bps
- For the fiscal year 2026, a reduction in the retail inflation is projected by 30 bps to 3.7%
- For the fiscal year 2026, the projected growth of GDP at 6.5%
- The next RBI MPC meeting will be held from August 4 to 6, 2025.
What is the impact of the repo rate cut on the FD ( fixed deposit)?
This is yet to impact the fixed deposit after the cut in the RBI repo rate. Pankaj Mathpal, the MD and CEO of Optima Money Managers, states that this is going to impact the FD rates negatively as soon as the decision of the repo rate cut is passed. He furthermore advised senior citizens and other Fixed deposit investors to open an FD account.
Yes, after this repo rate cut since February, buyers are targeting on buying affordable homes. In states like Kolkata, there is a seen increase in the sales of affordable housing units by property developers since the repo rate cut of 1% in February 2025.
Relating to it, Biplap Kumar, the realtor’s president, also stated that there is the expectation of reviving the RBI repo rate cut, which led to a 1% reduction in the home loan sector since February 2025.
Furthermore, the new decision of the RBI repo rate cut is welcomed, as well as the Developers of Siddha group, Jain group and Shristi infrastructure.
The topics delivered here are based on internet news analysis. We suggest that investors consult with a certified financial expert for any investment-related matters.
What happened to the IDFC bank share price recently?
After the CCI nod to the current Sea investment for the stake acquisition, it has been seen that the IDFC First Bank share price gained 2% in 1 month and 18% more in the last 3 months of 2025. In the last year, it also shows bank shares gained up to 5% and stocks reduced by 7 per cent. However, as per the recent report, the IDFC First Bank share increased by 0.64%.