RBI MPC Announcements: What decision did RBI give today regarding repo rate? Will your home loan or car loan EMI increase due to this decision? Why has RBI maintained its ‘neutral’ stance? What has been the trend of repo rate in the last few meetings?
RBI Repo Rate News: If you were worried about the fear of increasing EMI of your house, car or personal loan, then there is a very good and comforting news for you. Reserve Bank of India (RBI) Governor Sanjay Malhotra has announced the results of the Monetary Policy Review (MPC) meeting today. This time RBI has not put any new burden on your pocket and has kept the repo rate at 5.25% without any change. RBI has also kept its stance ‘neutral’. This simply means that despite the ongoing US-Iran war and the severe heat, the Reserve Bank of India has decided not to increase loan interest rates for the time being. Meaning your monthly EMI will continue as it was.
When did the repo rate increase and decrease in the last 5 times?
February 2025: Reduction of 0.25% (introduction of relief)
April 2025: Another cut of 0.25%
June 2025: Bumper reduction of 0.50% (loans became cheapest)
December 2025: 0.25% reduction
February 2026: No change, rates remained at 5.25%
What is repo rate?
Repo rate is the interest rate at which RBI gives loans to other banks like SBI, HDFC, ICICI. When this rate remains constant, your banks also do not increase the interest rates on your home loan or car loan.
What do you have to do if the repo rate does not increase?
Right time to take a new loan
Since the rates remain much lower (5.25%) than last year, if you are planning to buy a new home or car, this could be a good time to lock a loan at a floating rate.
Benefits of fixed deposit (FD)
If you have some extra savings, then banks are currently offering good interest rates on FD. Parking money in short-term or long-term FD can be a safe option.