# Borrowers Get No Respite as India's Central Bank Holds the Repo Rate Steady at 5.25%

> The Reserve Bank of India has again left the repo rate unchanged at 5.25 percent, meaning no immediate cut in home or car loan interest rates. Governor Sanjay Malhotra pointed to retail inflation running higher than expected as the key reason.

**Type:** article · **Category:** Business · **Published:** 2026-08-05 · **Source:** TrendKia
**Canonical:** https://trendkia.com/en/business/mahngai-ki-mara-ke-bicha-rbi-ne-repo-reta-5-25-para-tikaya-karjadaron-ko-nahin-mili-emi-men-rahata-13822 · **Language:** English
**Tags:** RBI, Repo Rate, MPC, Sanjay Malhotra, Loan Interest Rate, Retail Inflation, Monetary Policy

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.

## What this means for you
- **For borrowers:** With the repo rate unchanged, interest rates on home, car and personal loans, and your monthly EMI, are unlikely to fall for now.
- **For savers:** Since rates have not moved, the interest earned on fixed deposits is also likely to stay broadly steady.

## Questions & Answers

### 1. At what level has the RBI kept the repo rate?
The RBI has kept the repo rate steady at 5.25 percent.

### 2. Who took this decision?
The decision was taken by the RBI's Monetary Policy Committee, and Governor Sanjay Malhotra announced it.

### 3. Will there be any relief on loan interest rates?
No, with the repo rate unchanged, there is no relief for now on loan interest rates or EMIs.

### 4. When was the repo rate last changed?
The repo rate was last cut by 0.25 percent in December 2025.

### 5. Why did the RBI hold the rate steady?
The Governor said retail inflation remains higher than estimated, with food and fuel prices making up the largest share of it.

### 6. What is the MPC's stance?
The Monetary Policy Committee has maintained a neutral stance on interest rates.

---
_TrendKia — Har trend, sabse pehle.. Machine-readable view; canonical HTML at the URL above._