Repo Rate History: The second meeting of the RBI’s Monetary Policy Committee (MPC) for the financial year 2027 began on June 3. RBI Governor Sanjay Malhotra will announce the repo rate decisions tomorrow, June 5. Before that, learn about the RBI’s repo rate approach over the past 16 years.
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Repo Rate History: The central bank, the Reserve Bank of India (RBI), reviews its monetary policies every two months, and then announces the repo rate. RBI announcements not only mention the repo rate, but the market also closely monitors the RBI Governor’s statements on inflation and the economy. Currently, the repo rate has fluctuated significantly over the past 16 years, rising from 5% to 8%, before falling to 4% and then starting to rise.
The repo rate was raised by 25 bps to 5.00% in March 2010, after which it gradually reached 8.00% in January 2014. It then gradually declined, reaching 4% during the COVID-19 pandemic. It remained at this low level for several months and is currently at 5.25%, fluctuating. Here are details of the repo rate changes over the past 16 years.
Repo Rate History: Such was the fluctuation in 16 years
| Effective date | Repo rate | Shift |
|---|---|---|
| March 19, 2010 | 5.00% | +0.25% |
| April 20, 2010 | 5.25% | +0.25% |
| July 2, 2010 | 5.50% | +0.25% |
| July 27, 2010 | 5.75% | +0.25% |
| September 16, 2010 | 6.00% | +0.25% |
| November 2, 2010 | 6.25% | +0.25% |
| January 25, 2011 | 6.50% | +0.25% |
| March 17, 2011 | 6.75% | +0.25% |
| May 3, 2013 | 7.25% | +0.50% |
| September 20, 2013 | 7.50% | +0.25% |
| October 29, 2013 | 7.75% | +0.25% |
| January 28, 2014 | 8.00% | +0.25% |
| January 15, 2015 | 7.75% | -0.25% |
| March 4, 2015 | 7.50% | -0.25% |
| June 2, 2015 | 7.25% | -0.25% |
| September 29, 2015 | 6.75% | -0.50% |
| April 5, 2016 | 6.50% | -0.25% |
| October 4, 2016 | 6.25% | -0.25% |
| August 2, 2017 | 6.00% | -0.25% |
| June 6, 2018 | 6.25% | +0.25% |
| August 1, 2018 | 6.50% | +0.25% |
| February 7, 2019 | 6.25% | -0.25% |
| April 4, 2019 | 6.00% | -0.25% |
| June 6, 2019 | 5.75% | -0.25% |
| August 7, 2019 | 5.40% | -0.35% |
| February 6, 2020 | 5.15% | -0.25% |
| March 27, 2020 | 4.40% | -0.75% |
| May 22, 2020 | 4.00% | -0.40% |
| August 6, 2020 | 4.00% | 0.00% |
| October 9, 2020 | 4.00% | 0.00% |
| May 2022 | 4.40% | +0.40% |
| June 8, 2022 | 4.90% | +0.50% |
| August 5, 2022 | 5.40% | +0.50% |
| September 30, 2022 | 5.90% | +0.50% |
| December 7, 2022 | 6.25% | +0.35% |
| February 8, 2023 | 6.50% | +0.25% |
| June 8, 2023 | 6.50% | 0.00% |
| September 18, 2024 | 6.50% | 0.00% |
| December 6, 2024 | 6.50% | 0.00% |
| February 7, 2025 | 6.25% | -0.25% |
| April 9, 2025 | 6.00% | -0.25% |
| June 6, 2025 | 5.50% | -0.50% |
| August 6, 2025 | 5.50% | 0.00% |
| December 5, 2025 | 5.25% | 0.25% |
How important is the repo rate?
The repo rate is a monetary policy tool of the RBI, through which it manages inflation, liquidity, and economic growth. It is the interest rate at which commercial banks obtain loans from the RBI, collateralized by collateralizing government securities. The repo rate directly impacts the public because it significantly influences the rate at which they can access loans. Lowering the repo rate increases the likelihood of lower loan installments, while higher rates can increase the risk of higher EMIs.
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