RBI Repo Rate Kept Unchanged, What It Means for Your EMIs
The Reserve Bank of India (RBI) on Friday decided to keep the benchmark repo rate unchanged at 5.25% following its three-day Monetary Policy Committee (MPC) meeting. For the average consumer, this decision means that interest rates on loans and deposits will likely remain at their current levels for the next quarter.
Mumbai, February 6: The Reserve Bank of India (RBI) on Friday kept its key repo rate unchanged at 5.25%, maintaining a neutral monetary policy stance as inflation remains low and growth holds firm. The decision, announced after the Monetary Policy Committee’s (MPC) three-day review, offers predictability to borrowers and financial markets.
The repo rate pause follows a period of aggressive easing in 2025 and comes amid stable retail inflation, stronger growth projections, and ongoing global economic uncertainties. RBI Repo Rate: Reserve Bank of India Leaves Policy Repo Rate Unchanged, Sticks to Neutral Policy Stance.
Policy Decision and Economic Outlook
The six-member RBI MPC, chaired by Governor Sanjay Malhotra, opted to keep the policy repo rate at 5.25%, a level reached after cumulative cuts totaling 125 basis points since early 2025. Alongside the repo rate, key interest rates such as the standing deposit facility rate and marginal standing facility rate were also left unchanged.
The RBI retained its neutral stance, signalling a balanced approach between supporting growth and managing inflation risks. Real GDP growth for FY26 was revised higher, reflecting resilient domestic demand, while inflation is expected to remain within the central bank’s tolerance band. Gold Rate Today, February 06, 2026: Check 22K & 24K Gold Prices in Delhi, Mumbai, Chennai and Other Cities.
Impact on Borrowers and Loan Payments
For customers with floating-rate loans, the decision brings short-term stability. Home loan equated monthly instalments (EMIs) linked to the repo rate are likely to remain unchanged, offering existing borrowers predictability in their monthly payments.
While many had hoped for further rate relief, the RBI’s pause means no immediate drop in interest costs for new or existing loans. At the same time, the risk of sharp increases in EMIs appears limited in the near term.
Borrowers can still explore options such as refinancing, switching loan benchmarks, or prepayments to reduce interest costs over time despite the policy pause.
Why the RBI Chose to Hold Rates
Analysts say the MPC decision reflects a data-dependent approach. With inflation still subdued and growth prospects supportive, there was little pressure to adjust policy rates immediately. Global headwinds and ongoing macroeconomic risks also contributed to the cautious stance.
The RBI emphasised the importance of liquidity management and policy transmission to ensure that past rate reductions are fully reflected across the financial system.
Context: Past Rate Cuts and Transmission
The RBI’s rate easing in 2025, including several repo rate reductions, was aimed at cushioning economic growth and encouraging lending. While banks gradually passed on lower rates to customers, imperfect transmission in some loan categories meant that not all borrowers saw immediate benefits.
This backdrop helps explain why the MPC opted for a status quo in its latest review, choosing to monitor evolving data on inflation, growth and global conditions before making further changes.
(The above story first appeared on LatestLY on Feb 06, 2026 01:34 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).