Mumbai, August 5: The Reserve Bank of India’s Monetary Policy Committee (RBI-MPC) announced its decision on Wednesday, led by Governor Sanjay Malhotra. The central bank has kept the repo rate unchanged at 5.25 percent.
This marks the fourth consecutive time that the RBI-MPC has opted not to alter interest rates.
The three-day meeting of the RBI-MPC commenced on August 3, during a period of global instability that has led to rising crude oil prices and inflationary pressures.
Maintaining stable interest rates is expected to support economic growth.
In previous meetings held in June, April, and February 2026, the central bank also chose to keep interest rates steady. The last adjustment to the repo rate occurred in December 2025, when it was reduced from 5.50 percent to 5.25 percent.
The RBI’s decision to maintain the repo rate will provide significant relief to millions of borrowers with home loans, car loans, or other floating-rate loans. With no increase in the repo rate, their monthly EMIs will not rise, alleviating additional pressure on household budgets.
Furthermore, the likelihood of immediate interest rate hikes for new borrowers has also been postponed. This decision is viewed positively by industries and businesses, as it keeps borrowing costs stable and may accelerate investment plans. Banks will also benefit from the absence of sudden changes in interest rates.
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