RBI Holds Repo Rate at 5.25% in April 2026: Your EMI Will Not Change Now
Live Updated: April 8, 2026, 10:36 AM IST. The Reserve Bank of India has kept the repo rate unchanged at 5.25 percent. Governor Sanjay Malhotra announced the decision after the three day MPC meeting. Your home loan EMI will stay the same for now.
The six member Monetary Policy Committee voted to hold the policy repo rate at 5.25 percent and maintain its neutral stance in the first bi-monthly review of FY27. This marks the second consecutive pause after the RBI cut rates by a cumulative 125 basis points between February and December 2025. The decision was widely expected with 69 out of 71 economists in a Reuters poll predicting no change.
Markets responded positively before the announcement with Nifty Bank surging 4.6 percent and jumping over 2,400 points in early trade. Banking stocks including IndusInd Bank, AU Small Finance Bank, Bank of Baroda, and Axis Bank rallied between 5 and 6 percent as traders priced in the stable rate environment.
Why RBI Did Not Cut Rates
The ongoing conflict in West Asia has pushed crude oil prices above $100 per barrel, creating severe imported inflation risk for India. The Indian rupee has weakened past 93 per dollar, adding further pressure on import costs. SBI Research warned that imported inflation has already touched 5.4 percent and could push headline CPI above 4.5 percent for the next three quarters.
The RBI acknowledged that the current inflation at 3.2 percent does not yet reflect the full impact of the oil price shock. The central bank projects CPI inflation rising to 4 percent in Q1 of FY27 and 4.2 percent by Q2. Cutting rates in this environment would risk fueling inflation further and destabilizing the currency.
What This Means for Your Money
If you have a repo linked home loan, your EMI remains exactly the same. For a ₹50 lakh loan at 8.5 percent over 20 years, you continue paying approximately ₹43,391 per month. Check with your bank whether the 125 basis points of earlier cuts have been fully transmitted to your loan rate.
Fixed deposit rates at major banks will also remain stable. Senior citizens currently earning 7.5 to 8.5 percent should consider locking in these rates before any future revision. Post office savings schemes also remain attractive at current rates. Read our detailed comparison of post office monthly income scheme rates for the best options.
The next MPC meeting is scheduled for June 2026. Future rate action depends on how the West Asia situation evolves and whether crude oil prices stabilize below $90 per barrel.
You Need to Know
Repo rate unchanged at 5.25 percent. Stance remains neutral. GDP growth projected at 7.4 percent. CPI inflation projected at 4 to 4.2 percent for Q1 and Q2 of FY27. Next MPC meeting in June 2026. No immediate change in home loan EMIs or FD rates.
For the full background on what led to this decision, read our earlier analysis on the RBI MPC meeting prediction. You can watch the Governor’s press conference live at 12 PM on the official RBI website at rbi.org.in.
