The results of the Reserve Bank’s MPC meeting have been announced. Governor Sanjay Malhotra shared the information and said that there is no change in the repo rate this time. This means the interest rates will remain the same.

In the last three meetings, the central bank had reduced the repo rate. Right now, the repo rate is 5.50%. This clearly means that there will be no change in your loan EMI. It will not go down, and your burden will also not increase.

India’s Economic Growth is Strong

RBI Governor Sanjay Malhotra, while sharing the results of the MPC meeting, said that the festive season is always important for economic activity. But there is still some uncertainty about the tariff issue between the US and India.

However, the good monsoon and low inflation are helping the economy. Talking about world trade, he said that RBI has taken the right steps for India’s economic growth, and the growth remains strong.

From the Reserve Bank’s decision, it is clear that until the tariff matter between India and the US is fully clear, the central bank will not take any quick step.

Effect of Repo Rate on Loans

It is important to know what the repo rate is and how it affects your loan EMI.

Repo rate is the interest rate at which RBI gives loans to all the banks in the country. When RBI changes the repo rate, it directly affects people who have taken loans.

If RBI reduces the repo rate, banks get cheaper loans. Then banks may also reduce interest rates on Home Loans, Auto Loans, and Personal Loans. This helps loan customers to pay less EMI.

RBI’s Estimate on India’s GDP

While explaining why there is no change in the repo rate, Governor Sanjay Malhotra also shared RBI’s estimate on GDP growth.

RBI has kept the GDP growth estimate for FY26 at 6.5%. This shows RBI’s trust in the Indian economy.

For different quarters, RBI expects 6.5% growth in Q1, 6.7% in Q2, 6.6% in Q3, and 6.3% in Q4. For the next financial year, real GDP growth is expected to be 6.6%.

RBI’s Statement on Inflation

Talking about inflation, Governor Malhotra said that it will stay under control in FY26.

RBI has said that core inflation may remain at 3.1% during FY26. This is lower than the earlier estimate of 3.7% made in June.

However, he also said that inflation could rise at the end of the year and may go above 4%.

Retail inflation in July came down to 3.54%, which is the lowest since September 2019.

Forex Reserves Reach $689 Billion

RBI also said that India’s foreign exchange reserves have reached $688.9 billion.

This amount is enough to cover about 11 months of the country’s imports. Talking about banking growth, RBI said that even though the pace slowed down a little in FY25, the overall financial situation remains strong. Also, India’s share in global service exports has grown. It has now crossed 4%.