RBI monetary policy, Dec. 5 -- The Reserve Bank of India (RBI), in its last Monetary Policy Committee (MPC) meeting of 2025, held unanimously, decided to reduce the repo rate by 25 basis points to 5.25%. The move is expected to boost liquidity in the market through higher spending in rate-sensitive segments, such as banking, real estate, and consumer durables. According to tax and investment experts, the RBI's repo rate cut is expected to provide a sigh of relief to new home loan borrowers as well. They stated that a reduced repo rate would enable banks, NBFCs, and other financial institutions to lower their lending rates by up to 25 basis points, resulting in lower monthly home loan EMIs.

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