RBI Maintains Repo Rate at 5.25%: No Immediate Relief for Borrowers

• The Reserve Bank of India (RBI) has kept the repo rate unchanged at 5.25 percent, maintaining a neutral monetary policy stance.
• This decision means no immediate change in EMIs for existing home loan and personal loan holders, nor for new borrowers.
• The repo rate was previously at 4 percent from May 2020 to April 2022, then gradually increased to 6.5 percent, and recently reduced to 5.25 percent.
• The RBI's Monetary Policy Committee (MPC) raised its inflation forecasts, estimating 4% for Q1 FY2027 and 4.2% for Q2 FY2027, indicating a cautious approach.
• This is the central bank's last monetary policy meeting for the current financial year, emphasizing stability over immediate borrower relief.