The Reserve Bank of India (RBI) on Wednesday kept the repo rate unchanged at 5.25 per cent, in line with market expectations. The decision was taken after the Monetary Policy Committee (MPC) reviewed inflation, economic growth and global developments.
The repo rate is the interest rate at which the RBI lends short-term funds to commercial banks. It influences lending rates on home, vehicle and business loans, while also affecting deposit rates over time.
The RBI last lowered the repo rate in December 2025 by 25 basis points from 5.50 per cent to 5.25 per cent. The central bank has maintained the same rate in every policy meeting since then.
With the new ruling, borrowers whose loans are pegged to the external benchmark are unlikely to notice any immediate impact on their EMIs.
