Repo Rate
Mechanism and Transmission
The repo rate (repurchase agreement rate) is the rate at which the RBI lends short-term funds to commercial banks against government securities as collateral. It is the primary policy instrument through which the RBI controls the cost of money in the economy.
- Current repo rate (April 2026): 5.25% (unchanged)
- Standing Deposit Facility (SDF) rate: typically repo rate minus 25 bps = 5.00%
- Marginal Standing Facility (MSF) rate: typically repo rate plus 25 bps = 5.50%
- Reverse repo rate (discontinued as primary signalling tool; replaced by SDF in April 2022)
- Rate transmission: Change in repo rate → change in bank lending rates (MCLR/EBLR) → change in borrowing costs for households and firms → impact on inflation and growth. Full transmission typically takes 2–4 quarters.
- The RBI switched from the Monetary Policy Framework Agreement (MPFA) of 2015 to the statutory MPC framework in 2016 following Urjit Patel Committee recommendations.
● Tracked since March 27, 2026 · last seen June 21, 2026 · updates as the daily brief publishes
21 Jun '26
RBI Expected to Hold Repo Rate at 5.25% as MPC Monitors Food and Fuel Inflation
Economics
22 Apr '26
West Asia Crisis and Inflation Concerns Shape RBI MPC's Unanimous Decision to Hold Rates
Economics
08 Apr '26
RBI Holds Repo Rate at 5.25%, Projects FY27 GDP Growth at 6.9% Amid Global Uncertainty
Economics
08 Apr '26
RBI Holds Repo Rate at 5.25%: Warns of West Asia Conflict Impact on Indian Economy
Economics
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