RBI Holds Repo Rate at 5.25% in April 2026 Policy: Impact on EMIs & Deposit Returns

The RBI has kept the repo rate unchanged at 5.25% in its latest policy review. This indicates stability in loan EMIs and deposit rates, as inflation risks and global uncertainty remain in focus.

April 8, 2026: The Reserve Bank of India has kept the repo rate unchanged at 5.25% in its April 2026 Monetary Policy Committee meeting. The central bank has extended the pause in interest-rate changes as it continues to monitor inflation risks and global uncertainty. The policy stance remains neutral. At the same time, the bank highlighted concerns around geopolitical tensions and elevated crude oil prices, both of which could push inflation higher and influence future policy decisions.

For home loan borrowers, the decision means no immediate change in EMIs. Particularly for those with repo-linked floating-rate loans. Most banks adjust lending rates only after a policy move, so EMIs are expected to remain steady in the near term. At the same time, the policy doesn’t hint at any quick rate cuts. So waiting for cheaper home loans may not work out the way some borrowers expect. Loan against property rates are also likely to stay broadly stable. However, lenders may remain selective in approving loans, given the uncertain global environment.

With policy rates unchanged, fixed deposit interest rates are likely to remain stable across banks and NBFCs in the near future. This supports predictable returns for investors. However, the scope for further increases in deposit rates is expected to be limited unless inflation rises or liquidity conditions tighten. Commenting on the development, Amit Prakash, Co-founder of Urban Money, said that stable policy conditions are likely to sustain interest in FDs, though investors should maintain a mix of investments to protect returns from inflation over time.

For prospective homebuyers and borrowers considering refinancing, the current policy provides a practical planning window. Borrowers can lock in home loan terms without worrying about immediate rate increases, while savers may consider locking in existing FD rates before any shift in the interest-rate cycle later in the year.