Loan EMI will be cheaper again
RBI Repo Rate Cut News: The flow of good news is not going to stop for those who dream of owning a house and for the common people who are paying huge home loan EMIs. After the relief received in the monetary policy of December 2025, now there is every hope that the burden on your pocket will become lighter in February 2026 also. The Reserve Bank of India (RBI) is once again preparing to give a big gift to the common man in the coming days. While on one hand the faces of loan takers are blooming, on the other hand this can be a matter of some concern for FD investors, because the decline in interest rates will also affect the returns on their deposits.
Will interest rates fall again in February?
According to a latest detailed report by Union Bank of India (UBI), the central bank may maintain its accommodative stance in the Monetary Policy Committee (MPC) meeting to be held in February 2026. It is estimated that RBI may further reduce the repo rate by 25 basis points i.e. 0.25 percent.
At present the repo rate is at 5.25 percent. If this estimate of the report proves to be correct and the cut is made, then the repo rate will directly come down to the level of 5 percent. This will have a direct impact on the interest rates of your home loan, car loan and personal loan. Banks will reduce their interest rates, due to which there will be a significant reduction in your monthly installment (EMI) and you will see savings in the monthly budget.
Inflation under control, hence discounts are being given
Now the question arises that why is RBI continuously cutting interest rates? The answer lies in the inflation figures. It has been emphasized in the report of Union Bank that inflation is now under control to a great extent and the pressure of increasing prices has weakened.
RBI has also admitted on many occasions that the inflation situation is not that scary now. A very interesting analysis in the report is that if the increased inflation (about 0.50 percent) due to the rise in gold prices is removed, then the actual inflation rate appears to be even lower. However, it may be a bit challenging for RBI to take a decision in February 2026 because at that time there is going to be a change in the base year of CPI and GDP. It will be important to see how the inflation and growth rate figures come on these new scales.
The year 2025 has been full of reliefs
The year 2025 has proved to be no less than a boon for the borrowers. This year RBI left no stone unturned in reducing interest rates. Let us tell you that during the entire year 2025, the Central Bank has cut the repo rate a total of four times.
In the beginning of the year itself, relief of 0.25-0.25 percent was given in February and April. After this, in the month of June, RBI surprised everyone by making a big cut of 0.50 percent. The end of the year was also pleasant, when in the December meeting, the repo rate was again reduced by 0.25 percent, due to which the repo rate came down to 5.25 percent. Now after the possible cut in February 2026, this rate may go down further, which will help in increasing the cash flow in the economy and accelerating the demand for loans.
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