Newspunjab
5 June,2026
The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) has decided to maintain the repo rate at 5.25 percent. Announcing this on Friday, RBI Governor Sanjay Malhotra said that keeping in mind the current economic conditions, no change has been made in the rates. From January 2025 to June 2026, the RBI has reduced the repo rate by a total of 1.25 percent (125 basis points), bringing it down from 6.50 percent to 5.25 percent. The biggest beneficiary of this has been the customers of floating rate home and other loans, whose EMIs have reduced. However, due to the continuous reductions in the repo rate, banks have also reduced the interest rates offered on fixed deposits (FDs), due to which investors are getting lower returns than before.
