If you were hoping for cheaper loans, the wait continues. The Reserve Bank of India has once more decided to hold the repo rate at 5.25 percent. In plain terms, that means there is no relief on the horizon for interest rates on home, car and personal loans, or on your EMI, for now.
The MPC Meeting and the Governor's Announcement
Weighing the current economic conditions, the call was taken by the RBI's Monetary Policy Committee. The MPC meeting began on Monday this week, and today Governor Sanjay Malhotra laid out the details of the decisions it reached. The committee has kept its stance on interest rates at neutral.
No Change Through the Year
What stands out is that the central bank has not touched the repo rate even once through the entire year. The last time the rate moved was in December 2025, when it was trimmed by 0.25 percent. It has stayed put ever since.
Inflation Remains the Biggest Worry
Governor Sanjay Malhotra said the country's retail inflation is still sitting above estimates, with food and fuel prices accounting for the largest share of it. He noted that inflation is also keeping supply under pressure, while uncertainty over the monsoon means the outlook ahead cannot yet be called clearly. Even so, he expressed confidence that strong demand continues to steadily support the country's growth.
