The RBI has cut the repo rate by 25 bps to 5.25%. The repo rate is the interest rate at which commercial banks borrow money from the RBI by pledging government securities. Policy rates in major economies are: the US (4%), the UK (4%), the Eurozone (2.15%), Japan (0.5%), Australia (3.6%), Canada (2.25%), China (3%), Brazil (15%) and Russia (16.5%).