RBI Repo Rate Impact: The Reserve Bank of India (RBI) on Wednesday, October 01, decided to maintain the repo rate unchanged at 5.50 per cent for the 2nd time after three consecutive cuts earlier this year. This decision brings stability but no immediate relief or increase for borrowers or depositors.

The repo rate — the interest rate at which the RBI lends to commercial banks — was reduced earlier from 6.5% to 5.5% across two cuts, and now remains steady as the central bank waits to assess inflation trends and economic recovery.

Between May 2020 and April 2022, the RBI kept the repo rate steady at 4 percent. From April 2022 to February 2023, the RBI gradually increased the policy rates to 6.5 percent, maintaining this rate for two years until the recent reductions.

While the RBI’s stat

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