RBI MPC Meeting 2026: RBI Holds Repo Rate At 5.25%: Will Home Loan And Personal Loan EMIs Stay Unchanged? Here’s What Borrowers Need To Know

RBI MPC Meeting 2026: The Reserve Bank of India (RBI) in a major decision, post review of its assessment on June 5, has kept the repo rate unchanged at 5.25%. This is the third consecutive meeting that the central bank has kept its benchmark lending rate unchanged. Addressing media in New Delhi, RBI Governor Sanjay Malhotra stated that Monetary Policy Committee (MPC) has continued with ‘neutral’ stance, as it aims to maintain its commitment of continuous balancing between anchoring inflationary expectations and supportive to growth.

This is after cumulative repo rate cuts of 125 basis points, from February 2025 with the last cut occurring in December 2025. The central bank has, post December 2025 maintained a wait and watch approach and has been evaluating global and domestic growth outlook, inflationary dynamics and uncertainties in global environment.

What does this repo rate decision mean for those looking for home loans or personal loans?

People who are already servicing existing home, personal or auto loans, are unlikely to see much change in their EMIs in the near term. Similarly, new borrowers can also expect current lending rates to hold. Banks are unlikely to change their lending rates unless they change their own spreads or benchmark lending rates.

RBI holds repo rate: Will banks reduce lending rates?

The RBI has decided to hold back on its rate cut cycle but individual banks can still change their lending rates depending on factors such as their own cost of funds and competition. This policy announcement is not expected to induce a broad-based decline in lending rates.

What Home loan and Personal loan borrowers should be aware of

For loan borrowers, this decision by the RBI translates not in any form of relief, but consistency. Until the RBI chooses to kick off the rate cut cycle once again in the subsequent months, EMIs for existing home loans, personal loans and auto loans are expected to remain more or less similar.

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