RBI Holds Rate at 5.25%: Will Your EMI Drop?

RBI has kept the repo rate unchanged at 5.25% with a neutral policy stance. But with inflation now projected higher at 5.1% and GDP growth trimmed to 6.6%, your cost of living may rise even as loan rates stay flat.

Here's what happened: RBI held the repo rate steady at 5.25%, meaning banks have no fresh signal to cut lending rates on home, car, or personal loans.. Retail inflation forecast for FY27 was revised upward to 5.1% from 4.6%, signalling that everyday prices — groceries, fuel, rent — may stay elevated.. Real GDP growth projection was trimmed to 6.6% from 6.9%, suggesting the economy is growing but at a slightly slower pace than earlier expected..

What you should do: Check your home loan type — if you're on a floating-rate loan linked to repo (EBLR), your EMI won't change; confirm this with your bank's loan statement.. Review your monthly budget for inflation creep — with CPI projected at 5.1%, plan for higher grocery, fuel, and education costs in the coming months.. Compare FD rates now — banks may hold or slightly reduce deposit rates; lock in a 1-2 year FD at current rates before any future cuts reduce returns..

When RBI holds rates with a neutral stance, banks sometimes quietly cut savings account interest rates before cutting lending rates — check your savings account rate this week.