RBI keeps repo rate unchanged at 5.25 percent for third consecutive time in FY27: What does it mean for you?
The interest rate pause comes even as the Consumer Price Index (CPI) based headline retail inflation has crossed the RBI's medium-term target of 4 per cent at 4.38 per cent in June.
Reserve Bank of India
New Delhi: Reserve Bank of India governor Sanjay Malhotra-led Monetary Policy Committee (MPC) on Wednesday announced its decision to keep repo rate unchanged at 5.25 percent. It is important to note that the markets and experts widely expected the central bank to leave the benchmark repo rate unchanged.
A change in repo rate has a direct impact on the EMIs borrowers pay for their loans.
With global uncertainties persisting and inflationary pressures remaining elevated, most economists expected the six-member rate-setting panel to maintain a cautious stance despite the resilience shown by the Indian economy.
RBI has kept the repo rate unchanged at 5.25 percent
What it means for you
- No fresh relief on home/car loan EMIs
- No increase in borrowing costs either
- FD rates are likely to stay steady too, though banks can tweak these independently
The interest rate pause comes even as the Consumer Price Index (CPI)-based headline retail inflation has crossed the RBI's medium-term target of 4 percent at 4.38 percent in June. However, RBI marginally raised the growth forecast to 6.7 percent while lowering the inflation projection to 5 per cent for the current fiscal year.
Additionally, the rupee has been depreciating continuously since the beginning of this year. The rupee has been hovering between 95 and 96 against the dollar. Once considered among Asia's more stable currencies, the rupee has now become one of the worst-performing emerging market currencies this year, pressured by a mix of expensive oil, capital outflows, widening trade deficits and a surging US dollar.
It has depreciated about 7 per cent so far in 2026 and is down roughly 6 per cent since the outbreak of the Iran conflict in late February.
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