The Reserve Bank of India has taken a big decision in its monetary policy meeting. The RBI has decided to keep the repo rate unchanged at 5.25%. Which means your EMI will not decrease for now. If you are paying EMI on a home loan, car loan or any other loan, then you will have to wait for the next monetary policy. Inflation is expected to increase. This means that the war with inflation will continue. No less loan EMI. In the monetary policy meeting, RBI Governor Sanjay Malhotra informed that the repo rate will remain unchanged.
What was expected happened. The Reserve Bank of India has kept the repo rate unchanged for the fourth consecutive time. The last time the repo rate was changed was in December. The RBI MPC reduced the repo rate by 0.25%. Since then, the repo rate has been 5.25%. Last year, the interest rate was reduced by 1.25%. Four policy meetings have been held this year, but interest rates have remained unchanged. Importantly, many central banks around the world have raised interest rates in response to inflation. Meanwhile, the RBI has decided to maintain a neutral stance for the future.
The RBI has kept the repo rate unchanged amid global uncertainty. The lending rate will not be reduced for now. According to the RBI Governor, inflation may increase in the coming months as the prices of oil and food items have risen. This inflation will peak in the third quarter. The RBI has reduced the inflation forecast for the financial year 2027 from 5.1 percent to 5 percent. India’s GDP will grow by 6.7 percent. Governor Sanjay Malhotra said that India remains the fastest growing large economy in the world. The growth rate will be 6.7 percent by 2027.
