Live Updated: April 7, 2026, 4:20 PM IST. The RBI Monetary Policy Committee is meeting from April 6 to 8 and the decision on the repo rate will be announced by Governor Sanjay Malhotra on April 8 at 10 AM. Here is what it means for your EMI, FD rates, and savings.
The Reserve Bank of India’s six member MPC is widely expected to hold the policy repo rate unchanged at 5.25 percent in this meeting. A Reuters poll showed that 69 out of 71 economists surveyed forecast no change in rates. This would mark the second consecutive pause after the RBI cut rates by 125 basis points cumulatively since February 2025.
The primary reason for the expected pause is the ongoing conflict in West Asia. Crude oil prices have remained above $100 per barrel due to disruptions in energy supply routes, particularly around the Strait of Hormuz. India imports approximately 85 percent of its crude oil requirement and elevated energy prices directly push up inflation.
SBI Research has warned that imported inflation has already reached 5.4 percent and could push headline Consumer Price Index inflation above 4.5 percent for the next three quarters. With the rupee trading above 93 per dollar, the RBI has limited room to cut rates further without risking currency instability.
What This Means for Your Home Loan EMI
If you have a repo rate linked home loan, your EMI will not change tomorrow. The repo rate has been at 5.25 percent since December 2025 and is expected to stay there. For a ₹50 lakh home loan at 8.5 percent for 20 years, the current EMI is approximately ₹43,391. This will remain the same after tomorrow’s announcement.
However, borrowers who took loans before the 125 basis point rate cut cycle began in February 2025 should check if their bank has fully passed on the earlier reductions. Many banks reset loan rates quarterly, so the full benefit of past cuts may still be flowing through to your EMI.
For fixed deposit holders, the pause means FD rates at major banks are likely to remain stable for the next two months until the June MPC meeting. Senior citizens currently getting 7.5 to 8.5 percent on FDs should lock in these rates now before any future revision.
What Experts Are Saying
Analysts from Bank of Baroda believe this pause signals a prolonged hold in the rate cycle. HSBC estimates that if oil averages $100 per barrel, GDP growth could slow to 6 percent while inflation may average around 5 percent. The RBI’s own inflation projection for Q1 of FY27 is 4 percent, rising to 4.2 percent by Q2.
The next MPC meeting is scheduled for June 2026. Any future rate action will depend on how the West Asia situation evolves and whether crude oil prices stabilize.
You can track the official RBI monetary policy announcements at rbi.org.in. For more on how the new financial year rules affect your money, read our guide on money rules changing from April 1.
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