RBI MPC: The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) is convening for its inaugural meeting of the fiscal year 2026-27. Consequently, home loan borrowers and those paying EMIs are closely monitoring interest rates.
The six-member MPC will commence its meeting on Monday, April 6, with a decision anticipated on Wednesday, April 8. Typically, the RBI conducts six meetings each fiscal year, approximately every two months. These gatherings are crucial as they influence interest rates, money supply, inflation, and various economic indicators.
Why are home loan rates significant?
The RBI’s repo rate has a direct effect on bank loan rates. When the repo rate is lowered, banks generally reduce the cost of home loans, which can result in lower EMIs. Conversely, if the rates remain unchanged, the chances of EMI relief decrease.
What are the experts saying?
As reported by news agency PTI, the majority of experts anticipate that the RBI will not alter the repo rate this time around. ICRA Chief Economist Aditi Nair mentioned that there is still uncertainty regarding crude oil prices and the geopolitical landscape. Thus, the RBI may prefer to observe the inflation data for the time being.
SBI Chief Economist Soumya Kanti Ghosh noted that the global crisis is also affecting India. The rupee is trading above 93 per dollar, and crude oil prices are exceeding $100 per barrel, which is contributing to rising imported inflation.
Bank of Baroda Chief Economist Madan Sabnavis stated that there will likely be no adjustments to the repo rate or the policy stance this time. The RBI is expected to remain cautious, focusing more on GDP and inflation forecasts.
What will be the effect on housing demand?
Atul Monga, CEO of BASIC Home Loans, expressed that the RBI is not expected to lower rates this time. Given the current circumstances, interest rates are likely to stay the same.
Monga indicated that the stability in rates is currently offering some relief. If the RBI continues with this approach, housing demand may rise. There is also a rapidly growing demand for digital and streamlined loan processes. Stable rates and enhanced liquidity could facilitate easier access to loans and bolster the sector.
Real estate industry opinion
Ashish Bhutani, CEO of Bhutani Infra, said that a stable repo rate is not just a monetary decision, but a signal of confidence for homebuyers, developers, and investors. The country’s emerging urban corridors are poised for growth, but policy consistency is essential. We hope the RBI will maintain stability and keep real estate a strong engine of economic growth and employment.
Meanwhile, Amravati Group Chairman Rajnikant Mishra said the RBI is expected to maintain a balance between inflation and growth, keeping the repo rate stable. This will provide stability to the market and borrowers.
What has happened so far
Since February 2025, the RBI has cut the repo rate by a total of 1.25%. However, rates were kept stable at the August 2025, October 2025, and February 2026 meetings. Given global uncertainty, the RBI may approach this decision with caution.
Borrowers should closely monitor the RBI’s decision. A change in the repo rate will directly impact EMIs and loan costs. If rates remain stable, there’s little hope for immediate EMI relief.
