GenzeeRBI Holds Interest Rates Steady, Trims Growth Forecast
The Reserve Bank of India kept its key repo rate unchanged at 5.25% after its Monetary Policy Committee meeting concluded on 5 June 2026, maintaining a "neutral" stance for a third consecutive review.
What the RBI said
RBI Governor Sanjay Malhotra said the decision to hold rates was unanimous among committee members, according to reporting by Forbes India and Upstox. The central bank also revised its outlook: it lowered its FY27 GDP growth forecast to 6.6% from an earlier 6.9% projection, and raised its inflation forecast to 5.1% from 4.6%, citing the impact of conflict-driven energy price increases in West Asia along with monsoon uncertainty.
What a steady repo rate means for your EMI
A held rate generally means home loan, car loan and personal loan EMIs tied to external benchmark rates should stay roughly where they are for now, rather than rising or falling sharply. With the RBI flagging elevated inflation risk ahead, borrowers hoping for near-term rate cuts may need to wait a little longer, and it is worth building some buffer into your budget rather than assuming EMIs will fall soon.
Use our Loan / EMI Calculator to see exactly what a loan costs you at today's rates, and our India Income Tax Calculator to check how much of your income is left after tax to service any EMI comfortably.
Note: This is a plain-language summary, not tax/financial advice. Rates and rules can change; verify your specific case with the relevant authority or a qualified professional. See our editorial policy for how we source and date these updates.