RBI Monetary Policy: Repo Rate Kept Unchanged at 5.25%
No Relief for Home Loan EMIs: RBI MPC Holds Repo Rate Steady at 5.25%
Jun 5, 2026, 10:50 IST
RJ Kesari Desk: Borrowers looking forward to a drop in their monthly loan repayments will have to wait longer.
The Reserve Bank of India’s (RBI) six-member Monetary Policy Committee (MPC), headed by Governor Sanjay Malhotra, officially concluded its three-day deliberations and decided to keep the benchmark repo rate unchanged at 5.25%.
Citing geopolitical friction in West Asia and its subsequent pressure on global supply chains and energy prices, the central bank opted to stick with a cautious neutral stance.
The Impact on Retail Borrowers and Inflation Rates
-
EMI Status: Because the policy repo rate remains static, commercial banking institutions are highly unlikely to cut interest rates on floating-rate retail loans, keeping your Home Loan, Car Loan, and Personal Loan EMIs unchanged.
-
Inflation Dynamics: While India’s core inflation remains stable at 3.7%, ongoing disruptions in global crude oil and gas markets pose a threat to long-term price stability.
-
GDP Correction: Factoring in these global economic shocks and a volatile rupee, the central bank conservatively revised India's real GDP growth forecast down to 6.25% for the fiscal year.