By Admin 
Rbi repo rate: Before the festival of Rakshabandhan in the country, a gift of interest rate cut can be given by the Reserve Bank of India once again. According to a report by State Bank of India (SBI), the Repo Rate cut in the Repo Rate (BPS) can be announced in the meeting of the Reserve Bank of Monetary Policy Committee (MPC) from 4 to 6 August.
Credit growth will be promoted in festive season
The report said that due to the reduction in interest rates in August, ‘early Diwali’ may come out due to the promotion of credit growth as the festive season is going to start soon in FY 2026.
It further states that in view of the previous data, it is clear that due to decrease in the repo rate before Diwali, credit growth is promoted in the festive season. It further said, we hope that in the meeting of the MPC to be held in August, the Reserve Bank will again cut the repo rate by 25 basis points.
The report stated that after cutting 25 basis points in the repo rate in August 2017, there was a jump of Rs 1,956 billion in credit growth till the end of Diwali. About 30 percent of these were from the personal loan segment alone.
Since Diwali is one of the big festivals of the country, consumer spending is seen during this period and due to the low interest rate before Diwali, the rate of loan taking is also improved. The low repo rate reduces the cost of borrowing banks, so that they are able to give loans to customers at low interest rates.
So far, the cut has been done three times
In the year 2025, the repo rate has been cut three times by RBI so far. Earlier, in the meeting of MPC held in February and April, the repo rate was cut by 25-25 basis points. After this, the repo rate was cut by 50 basis points in June, which reduced from 6 percent to 5.50 percent.
The reducing repo rate makes the home loan cheaper because the rates of home loans are attached to the repo rate. If the interest rates are low, people will take a loan for shopping for homes and cars. This increases liquidity in the economy and promotes growth.
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