If you were hoping that the EMI of your home loan or car loan would be reduced, then for the time being, you will have to wait a little longer. The Reserve Bank of India (RBI) has decided to keep the repo rate unchanged at 5.5% in the monetary policy meeting of August 2025. This means that there is no change in interest rates. The Monetary Policy Committee (MPC) led by RBI Governor Sanjay Malhotra has taken this decision, given the current economic situation of the country. Let us know how this decision will affect you and what it means if there is no change in the repo rate.
What is the repo rate
Repo rate is the interest rate at which banks get loans from the RBI to meet their needs. When the repo rate is low, banks get cheaper loans, and they are also able to give home loans, car loans, and personal loans to customers at lower interest rates. But, with no change in the repo rate this time, there is no hope of immediate relief in EMI as well.
RBI did not change the repo rate
The Monetary Policy Committee (MPC) of the Reserve Bank of India has taken a big decision today and decided to keep the repo rate stable.
How much was the cut this year
Since the beginning of this year, RBI has cut the repo rate three times from February to June, giving a total relief of 1%. In the monetary policy review of June 2025, a big cut of 0.5% was made in the repo rate. At the same time, this cut was made by 0.25-0.25% in February and April. But in the August meeting, the RBI did not change the rates in view of the current economic situation.
What is the update on inflation and GDP
In this meeting of the RBI, the country’s gross domestic product (GDP) growth forecast has been retained at 6.5% for 2025-26. This is a positive sign that the RBI is optimistic about the growth of the economy.
At the same time, the retail inflation forecast for the current financial year has been reduced to 3.1%, which was earlier estimated to be 3.7%. This shows that RBI expects inflation to remain under control, which may keep the possibility of interest rate cuts in the future. This decision of the RBI shows that the bank is giving priority to economic stability. However, this is not good news for those who were expecting a reduction in EMI.