RBI maintains 5.25% repo rate: What it means for homebuyers and EMIs
The RBI has decided to keep its key interest rate unchanged in its latest policy review. What could this steady stance mean for homebuyers and their monthly loan repayments?
The repo rate is the interest rate at which the Reserve Bank of India lends money to commercial banks. It is a key tool used to control inflation and manage economic growth. Changes in the repo rate influence loan EMIs, deposit rates and overall borrowing costs. This topic page tracks repo rate decisions, policy signals, expert analysis and their impact on banks, markets and consumers.
The RBI has decided to keep its key interest rate unchanged in its latest policy review. What could this steady stance mean for homebuyers and their monthly loan repayments?
Even though inflation is within the comfort band and growth remains robust, RBI signalled that it is not ready to shift toward a softer stance. Global uncertainties, from geopolitical tensions to commodity volatility, continue to influence the outlook.
While many homebuyers were hoping for a rate cut, the RBI decision to keep rates steady at 5.25% is not bad news, especially for those who value stability and clear planning.
The Reserve Bank of India (RBI) kept repo rate unchanged at 5.25% in the last meeting for Fy26. The RBI Governor said inflation trends have been supportive of keeping rates unchanged.
In its December policy meeting, the Reserve Bank of India had reduced the repo rate by 25 basis points from 5.50% to 5.25%. At the same time, it retained a neutral policy stance.
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With benign inflation offering more policy space to support growth, how the RBI’s Monetary Policy Committee arrived at its decision to recommend a rate slash
Since he took over as Reserve Bank of India Governor a year back, Sanjay Malhotra has walked the fine line between sustaining growth and safeguarding stability. At the RBI's headquarters in Mumbai, he spoke to Group Editorial Director Raj Chengappa and Managing Editor M.G. Arun on a range of economic issues, like why he considers the economy to be in a Goldilocks phase, how the repo rate cuts will push demand, whether the RBI has any plans to shore up the weakening Indian rupee, and more. Excerpts:
With several major banks already passing on the benefit, SBI’s move will directly help customers whose loans are linked to different lending benchmarks.
With several banks adjusting their lending rates downwards, home loan customers may soon notice a drop in their EMIs.
RBI governor Sanjay Malhotra said the decision took into account low inflation and the impressive second quarter GDP growth—a “Goldilocks” moment for the economy
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India’s central bank has reduced the repo rate by 25 basis points. This move is likely to influence home loan interest rates and stimulate activity across the housing and real estate sectors.
RBI Governor Sanjay Malhotra said the committee unanimously agreed on the rate cut after assessing inflation trends, growth forecasts and liquidity needs.
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The rate cut takes the repo rate down from 5.5% to 5.25%. Alongside this, the Standing Deposit Facility (SDF) rate has been adjusted to 5%, while the Marginal Standing Facility (MSF) rate and the bank rate now stand at 5.5%.
Earlier this year, the RBI cut the repo rate by 100 basis points across three rounds, supported by falling inflation. But the backdrop has now shifted.
In its October meeting, the MPC kept the repo rate steady at 5.5% for a fourth straight time. RBI Governor Sanjay Malhotra had then said that inflation had moderated sharply, giving the committee confidence to maintain its stance.
With inflation staying unusually low and the economy showing strong growth, expectations of a small rate cut have gathered pace.
In an exclusive interview with India Today, Reserve Bank of India (RBI) Governor Sanjay Malhotra described the Indian economy as being in a 'Goldilocks period' characterised by high GDP growth of 8 per cent and low inflation.
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The Reserve Bank of India (RBI) has reduced the repo rate by 50 basis points to 5.5%, marking the third consecutive rate cut. This decision comes amid a sharp drop in retail inflation to 3.16% in April and strong economic growth of 7.4% in the January-March quarter. The move is expected to make loans cheaper, benefiting borrowers, especially home buyers. The RBI has also changed its stance from accommodative to neutral, indicating a data-driven approach moving forward.
Tahawwur Rana, accused in the 2008 Mumbai terror attacks, is being extradited from the U.S. and will arrive in India early tomorrow. He will be taken into custody by the NIA for initial interrogation and investigation, escorted by a special team of intelligence officials.
The Reserve Bank of India has cut the repo rate by 25 basis points to 6%, potentially leading to lower EMIs for home loans. The RBI has also lowered the GDP forecast for FY26 to 6.5% from the earlier 6.7%. The Monetary Policy Committee unanimously decided to change the stance from neutral to accommodative, hinting at possible further easing. The RBI Governor expressed concerns over global trade uncertainties and their potential impact on inflation and growth.
This marks the first rate cut since 2020 and the first policy decision under Governor Malhotra’s leadership.
The Reserve Bank of India (RBI) kept the Repo Rate unchanged at 6.5 per cent for the fourth consecutive policy, but red flagged volatility in food and fuel prices.
The Reserve Bank of India on Thursday left its key interest rate unchanged for a second straight policy meeting but signalled that it wants to see inflation moderate more while preserving the growth momentum.
The governor of the Reserve Bank of India (RBI) on Thursday said that the Monetary Policy Committee has unanimously decided to keep the benchmark repo rate unchanged at 6.5 per cent.
The Reserve Bank of India on Thursday hit the pause button and decided to keep key benchmark policy rate at 6.5 per cent even as inflation is trending above its tolerance level.
The Reserve Bank of India (RBI) today raised the repo rate by 25 basis points to 6.5 per cent on Wednesday from 6.25 per cent. The rate hike will directly impact borrowings and will make home loans costlier.
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The Reserve Bank of India (RBI) Governor Shaktikanta Das announced on Wednesday that the Monetary Policy Committee (MPC) has decided to hike the key interest rate by 25 basis points, taking the repo rate to 6.5 per cent.
The Reserve Bank of India Governor Shaktikanta Das on Friday said the central bank will ensure adequate liquidity in the system to ease the financial stress caused by the Covid-19 pandemic. The central bank reduced the reverse repo rate - the rate at which banks park their fund with the central bank - by 25 basis points to 3.75 per cent.
Union Finance Minister Nirmala Sitharaman may provide relief to the common man with the tax cuts and also with low-interest rates in Budget 2020. So the common man can expect an increase in Income Tax exemption limit from Rs 2.5 lakh to Rs 5 lakh, controlled consumer inflation, increased tax benefits on affordable housing, low Goods and Services Tax (GST) on consumer durables and Fast-moving consumer goods (FMCG) and also low-interest rates on the bank loan.