The Reserve Bank of India (RBI) has kept the repo rate unchanged at 5.25%. This means there will be no impact on your loan EMIs.
The Reserve Bank of India (RBI) has kept the repo rate unchanged at 5.25%. This means there will be no impact on your loan EMIs. RBI Governor Sanjay Malhotra announced that the Monetary Policy Committee decided not to change the repo rate. The Governor stated that while global uncertainty persists, inflation in India is well under control. Inflation is below the RBI's limit. The inflation rate is around 4%, which means inflation is not putting much pressure on our industry and the country.
Economy is stable
Governor Sanjay Malhotra also stated that the Indian economy is stable, and domestic inflation and growth are positive. The central bank has revised the country's growth forecast for the fiscal year 2025-26 from 7.3% to 7.4%. Sanjay Malhotra said that many measures announced in the 2026 budget will be supportive of growth, and he expressed hope that services and exports will remain strong. Additionally, he mentioned the India-EU free trade agreement and a potential India-US trade deal, stating that these agreements will boost India's exports.
Will interest rates decrease or increase?
The Reserve Bank's decision to keep the repo rate unchanged means there will be no relief for you in bank interest rates. With the repo rate remaining unchanged, there is no hope for cheaper loans. The unchanged repo rate means banks will not be affected by the RBI's lending rate. Banks will also not reduce interest rates for customers.
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After the repo rate was kept unchanged, the stock market saw a decline. The Sensex fell by 340 points to below 83,000, while the Nifty traded 150 points lower at below 25,500. The Bank Nifty also fell by about 300 points. Today, shares in the automobile, banking, and real estate sectors declined. The BSE Auto index fell by 542 points to 60,803, while the BSE Bankex dropped by 158 points to 67,378. The BSE Realty index also fell by 49 points to 6,343.
