The Reserve Bank of India (RBI) has further reduced the repo rate to 6% following the first Monetary Policy Committee meeting of FY26. This second consecutive rate cut aims to control inflation, encourage borrowing,

The repo rate is the interest rate at which the Reserve Bank of India (RBI) lends money to commercial banks (like SBI, HDFC, etc.) when they are short on cash. RBI = Big Bank Your bank (like SBI) = Small bank When your bank needs money, it borrows from RBI at a certain interest rate — that rate is called the Repo Rate.

The RBI’s recent 25 basis point repo rate cut to 6% reflects a shift to an accommodative stance amid softening inflation. Economists predict further cuts may occur, contingent on global economic conditions and trade tensions.