RBI Cuts Repo Rate to 5.25% as Inflation Hits Historic Low: Impact on Loans and Savings

Dec 05, 2025 01:44 pm CST

The Reserve Bank of India has reduced the repo rate by 25 basis points to 5.25% amid record-low inflation of 0.25% and a weakening rupee. This article examines how this policy change affects borrowers and savers, the mechanics of repo rate adjustments, and their impact on various loan types including home, auto, and MSME loans.