The Reserve Bank of India (RBI) announced its latest monetary policy on April 8. As expected, there has been no change in the repo rate, which remains at 5.25%.
Experts had already predicted that the RBI would not change rates in April. The last repo rate cut was made in December 2025, and even in February, no changes were announced.
No Immediate Relief in EMIs
If you were hoping for lower EMIs, you may have to wait a bit longer.
Since the repo rate remains unchanged, home loan and other loan EMIs will stay the same for now. However, it’s worth noting that the RBI has already reduced the repo rate by 1.25% since February last year, which has given some relief to borrowers.
Experts believe that global tensions, especially the ongoing conflict in the Middle East, could increase inflation. Because of this, the RBI is being cautious and not rushing to cut rates further.
RBI’s Decision and Future Outlook
The Monetary Policy Committee meeting began on April 6, and Governor Sanjay Malhotra announced the outcome on April 8 at 10 a.m.
The committee decided to keep the repo rate unchanged and maintained a neutral stance.
Looking ahead, experts say that if inflation stays under control and global conditions improve, the RBI may reduce rates by around 0.25% in the second half of the financial year. However, any decision will depend on inflation risks.
How Middle East Tensions Affect You
The RBI has also highlighted concerns about the ongoing war in the Middle East.
Higher crude oil prices are a major worry. If oil prices stay high, transportation costs increase, which can push up the prices of many goods. This can lead to overall inflation, affecting the economy and delaying any rate cuts.
What Should Loan Buyers Do Now?
If you are planning to take a home loan or car loan, experts suggest not waiting too long for rates to fall.
You can consider taking loans at floating interest rates. These loans adjust with changes in the repo rate. So, if the RBI cuts rates in the future, your EMI will automatically come down.
In contrast, fixed-rate loans do not offer this benefit.
Borrowers Have Already Seen Some Relief
Even though rates are unchanged now, borrowers have already benefited from earlier cuts.
For example, on a home loan of ₹50 lakh at 8.50% interest, EMIs have reduced by about ₹3,057 per month after the previous rate cuts. Some borrowers also chose to keep their EMI the same and instead reduced their loan tenure.
