There has been no change in the repo rate in the first meeting of the new financial year. It has been maintained at 5.25%. That means the loan will not be expensive and your EMI will also not increase. RBI Governor Sanjay Malhotra today informed about the decisions taken in the Monetary Policy Committee meeting on April 8. Earlier in February also there was no change in the repo rate. RBI last reduced the interest rate by 0.25% to 5.25% in December 2025. The rate at which RBI gives loans to banks is called repo rate. When RBI reduces the repo rate, banks pass this benefit on to the customers. According to the RBI Governor, the reason for not changing the interest rate by 1.25% four times in 2025 is that the danger of inflation rising again is not over yet. There is a possibility of increase in the prices of fruits, vegetables and grains due to bad weather and unseasonal rains. The supply chain is being adversely affected due to the Iran-Israel war. RBI is currently adopting the policy of ‘wait and see’. In view of the turmoil in the global market, RBI does not want to take any decision in haste. The bank currently wants to keep an eye on the economic conditions around the world. For this reason the interest rate was not changed. Big things from RBI Governor Sanjay Malhotra: Inflation rate may be 4.6% in FY27. GDP growth for FY27 is estimated to be 6.9%. RBI meeting is held every two months. There are 6 members in the Monetary Policy Committee. Of these, 3 belong to the RBI, while the rest are appointed by the Central Government. RBI meeting is held every two months. There will be a total of 6 meetings of the Monetary Policy Committee in the financial year 2026-27. The first meeting was held on 6-8 April 2026. What is repo rate, how does it make loan cheaper? The interest rate at which RBI gives loans to banks is called repo rate. Due to low repo rate, the bank will get loan at low interest. When banks get cheaper loans, they often pass the benefit on to their customers, that is, banks also reduce their interest rates. Why does the Reserve Bank increase and decrease the repo rate? Any central bank has a powerful tool to fight inflation in the form of the policy rate. When inflation is very high, the Central Bank tries to reduce the money flow in the economy by increasing the policy rate. If the policy rate is high then the loan that banks get from the Central Bank will be expensive. In return, banks make loans costlier for their customers. This reduces money flow in the economy. If money flow decreases, demand decreases and inflation decreases. Similarly, when the economy goes through a bad phase, there is a need to increase money flow for recovery. In such a situation, the Central Bank reduces the policy rate. Due to this, the loan received by the banks from the Central Bank becomes cheaper and the customers also get the loan at a cheaper rate.
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No change in repo rate, loans will not be expensive: RBI kept the interest rate at 5.25%; 1.25% cut four times in 2025
