"In 2025, policy decisions by the Reserve Bank of India are again at the centre of discussions on EMIs, deposit rates, and market returns. Many people now track interest rate moves more carefully because even a small change can alter their monthly budget or expected returns from savings. As of the latest Monetary Policy Committee meeting in December 2025, the current rate of repo rate stands at 5.25% per annum."
"Policy announcements usually mention rate changes in "basis points" or "bps". This is a standard way of expressing small shifts in interest rates. Many applicants use an EMI calculator alongside rate updates to understand how changing interest levels may influence the loan amount they can qualify for. So, when the repo rate moves from 5.50 % to 5.25 %, that is a 25 bps cut."
Reserve Bank of India policy decisions influence EMIs, deposit rates, and market returns, and small rate moves can change monthly budgets or savings returns. The repo rate is 5.25% per annum after measured cuts in 2025 as the RBI balances growth support with keeping inflation within its target band. The reverse repo rate has been held at 3.35%, showing a preference for adjusting the main lending rate while using other liquidity tools. Policy announcements express rate moves in basis points, where a change from 5.50% to 5.25% equals a 25 bps cut, small numerically but meaningful system-wide.
Read at London Business News | Londonlovesbusiness.com
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