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News India Live, Digital Desk: The month of December (December 2025) is about to end and before the New Year, the Reserve Bank of India (RBI) has given a mixed gift to the people of the country. If you are one of those people who have the burden of home loan or car loan EMI on their shoulders, then there is a great news for you. At the same time, if you are someone who survives on interest by keeping FD (Fixed Deposit) in the bank, then you may be a little disappointed.
The latest news is that RBI has once again Repo Rate Have cut down. Along with this, the estimates regarding retail inflation (CPI) indicate that things may become cheaper in the coming days.
Let us understand in simple language what effect this decision is going to have on your kitchen and wallet.
Those with loans are out of luck (Cheaper Loans)
Whenever RBI reduces the repo rate, banks get cheaper money from RBI. Now when banks will get cheaper money, they will also pass this benefit to the customers.
- Home Loan and Car Loan: If you have any ongoing loan, your bank may soon reduce the interest rates, which will reduce your monthly EMI.
- New Loan: If you are thinking of buying a house, then this time may prove to be very right because the interest rates are going to come down.
Will inflation reduce?
RBI has given positive signals regarding CPI i.e. retail inflation rate. This means that food items, commodities and everyday items may become slightly cheaper in the coming time. This step of Governor Shaktikanta Das has been taken to increase the flow of money in the market and accelerate growth.
But… here’s a catch (Bad News for Savers)
Every coin has two sides. Those who keep their savings in the bank suffer the loss due to low repo rate.
When loans become cheaper, banks also reduce the interest on deposits (Deposit Rates).
- FD Rates: This will have a direct impact on fixed deposits (FD). Banks may cut FD interest rates in the coming weeks. That is, if you are a senior citizen or dependent on FD interest, your earnings may decrease slightly.
smart advice
Friends, this is the time to relook at your financial planning.
- If you want to take a loan, do some research and see which bank is offering the cheapest offer.
- If you want to make FD, then if possible, lock the money at the old (existing) rates before the rates decrease.
Rest, this step of RBI is to give impetus to the country’s economy. It is expected that the reduction in loan EMI will provide great relief to the middle class.