Home, Auto loan EMIs may ease as RBI cuts Repo rate by 25bps
GDP growth forecasted at 7.3% in FY26
Mumbai : Home, Auto loan EMIs may ease as the Reserve Bank of India (RBI) has reduced the policy repo rate by 25 basis points to 5.25%. Consequently, the standing deposit facility (SDF) rate shall stand adjusted to 5.00 per cent and the marginal standing facility (MSF) rate and the Bank Rate to 5.50 per cent.
“After a detailed assessment of the evolving macroeconomic and financial developments and the outlook, the MPC voted unanimously to reduce the policy repo rate under the liquidity adjustment facility (LAF) to 5.25 per cent. Consequently, the standing deposit facility (SDF) rate shall stand adjusted to 5.00 per cent and the marginal standing facility (MSF) rate and the Bank Rate to 5.50 per cent. The MPC also decided to continue with the neutral stance” said RBI Governor Sanjay Malhotra.
RBI will infuse around Rs 1.45 lakh crore ($16.15 billion) of liquidity into the banking system, Malhotra said on Friday.
The RBI MPC revised GDP growth forecast to 7.3 percent for current fiscal year from 6.8 percent earlier, Q3 revised to 7 percent from 6.4 percent earlier; and Q4 revised to 6.5 percent from 6.2 per cent. Meanwhile, the inflation projection for FY26 was also revised to 2 percent from 2.6 percent projected earlier.
The Monetary Policy Committee (MPC) held its 58th meeting from December 3 to 5, 2025, under the chairmanship of Shri Sanjay Malhotra, Governor, Reserve Bank of India. The MPC members Dr. Nagesh Kumar, Shri Saugata Bhattacharya, Prof. Ram Singh, Dr. Poonam Gupta and Shri Indranil Bhattacharyya attended the meeting.