DBT Bureau
Bengaluru, 6 June 2025
The Reserve Bank of India took a bold step of cutting the repo rate by 50 basis points on its latest policy review in its bid to support growth amid global macroeconomic uncertainty. The central bank also announced a reduction of CRR by 100 basis points in four tranches starting September.
Policy instruments | Old Rate | New Rate | |
Repo Rate | 6% | 5.50% | |
CRR* | 4% | 3% | |
SDF (Standing Deposit Facility) | 5.75% | 5.25% | |
Marginal Standing Facility (MSF) | 6.25% | 5.75% | |
Inflation projection for FY26 | 4% | 3.70% | |
FY26 GDP Projection | 6.50% | 6.50% | |
* CRR cut to be implemented in four tranches starting from September |
*The stance of RBI changed to neutral from accommodative.