The Reserve Bank of India (RBI) has announced its latest Monetary Policy Committee (MPC) decision, keeping the repo rate unchanged at 5.25%. RBI Governor Sanjay Malhotra made the announcement, confirming that there will be no immediate impact on home loan, auto loan, or personal loan EMIs.
This marks the second consecutive policy meeting in which the central bank has left the repo rate unchanged. The last change came in December 2025, when the RBI reduced the benchmark rate by 25 basis points (0.25%) to 5.25%.
No Relief or Hike in Loan EMIs
Since the repo rate remains unchanged, borrowing costs are expected to stay stable. Existing and new borrowers with repo-linked loans are unlikely to see any increase in their monthly EMIs.
The RBI’s decision indicates that the central bank is maintaining a cautious approach while monitoring inflation and global economic conditions.
RBI Governor Highlights Economic Resilience
During the post-policy press conference, RBI Governor Sanjay Malhotra said that India’s economy has shown strong resilience in the first quarter, supported by positive high-frequency economic indicators despite continued global uncertainty.
However, he also pointed to renewed geopolitical tensions in the Middle East, which have increased volatility in energy prices and created fresh concerns over global supply chains.
Inflation Expected to Rise Before Easing
According to the RBI Governor, retail inflation remains above the expected level and may increase further due to rising food and fuel prices.
The central bank expects inflation to peak in the third quarter of FY2027, after which it is likely to moderate. At the same time, core inflation, excluding precious metals, remains under control and is broadly in line with the RBI’s earlier projections.
GDP Growth Forecast Revised Upward
The RBI has raised India’s GDP growth forecast for the current financial year to 6.7%.
Earlier, during the June MPC meeting, the central bank had reduced the growth estimate from 6.9% to 6.6% due to global economic uncertainties. In the latest policy review, the forecast has been revised upward by 10 basis points (0.10%), reflecting improved confidence in domestic economic growth.
Key Highlights
- Repo Rate: Unchanged at 5.25%
- Loan EMIs: No immediate increase expected
- Inflation Outlook: Likely to rise before easing later
- GDP Growth Forecast: Revised upward to 6.7%
- RBI’s Stance: Focused on balancing inflation control with economic growth amid global uncertainties.
Babita Singh has approximately six years of experience working in media, astrology, and religious subjects. She has a strong grasp of topics such as Samudrik Shastra, numerology, Vastu Shastra, Feng Shui, mythological tales, and planetary transits. Additionally, she possesses a solid knowledge of religious scriptures. In her free time, she particularly enjoys reading religious texts, researching them, and sharing accurate information with the public.