The Reserve Bank of India (RBI) Monetary Policy Committee (MPC) has decided "unanimously" to keep the repo rate unchanged at 5.25% continuing with the neutral
stance. The RBI Governor Sanjay Malhotra had highlighted the economic shocks due to the Iran War, and said India has taken it in a very smartly. "Energy shocks kept the economic in a challenge," he said. Governor Malhotra said the impact of supply shock to weigh on Q4 onwards. "CPI inflation remains below the target, despite global shock, and the outlook remains clouded due to southwest monsoon forecasts and el nino risks," he said. Growth and inflation projections: The RBI has revised the Gross Domestic Product (GDP) projection at 6.6% from its earlier 6.9 per cent. The quarterly growth projections for Q1 FY27 is 6.6 per cent, Q2 FY27 is 6.3 per cent, Q3 FY27 is 6.5 per cent, and Q4 FY27 is 6.8 per cent. The RBI has further projected the CPI inflation for FY27 at 5.1 per cent. The quarterly inflation forecasts are Q1 FY27 at 4.2 per cent, Q2 FY27 at 5.1 per cent, Q3 FY27 at 5.9 per cent, and Q4 FY27 at 5.4 per cent. How it will impact your Home Loan EMI? The RBI announcement on the repo rate will keep the home loan EMIs unchanged for the borrowers. Welcoming the news for the real estate space, Manoj Goyal, Director, Forteasia Realty Pvt. Ltd. said, "For many borrowers , home loans have gotten a bit more manageable. This started after 2025, when lenders cut their rates by 125 basis points and, well you can feel it in the numbers. People with a standard housing loan of ₹50 lakh now have monthly EMIs that come to almost ₹4,000 less than the peak level they were paying earlier. That matters a lot for anyone trying to finally buy a first home, because affordability is not just a slogan there. Also, mid-income developers and affordable housing builders are seeing stronger customer footfall and more active enquiries , at their sites." "So this rate pause gives you a chance to enter the market, before property prices move up against you. Just don’t sit on the fence too long , because your wait shouldn’t turn into extra cost from any possible future rate changes," he added. Also Read: RBI MPC June Meeting Highlights: Top Announcements By Governor Sanjay Malhotra During the April Monetary Policy Committee meeting, the Reserve Bank of India (RBI) had kept the repo rate unchanged at 5.25 per cent maintaining neutral stance. The standing deposit facility rate and marginal standing facility rate were kept unchanged at 5 per cent and 5.5 per cent respectively. The RBI MPC meeting in April was clouded by Iran War that led to global crude oil volatility. Since the onset of war, India has registered four consecutive hike in the prices of petrol and diesel in less than two weeks time with the cumulative increase of nearly Rs 7.5 per litre. Prices were increased for the first time on May 15 by Rs 3 per litre, followed by another hike of around 90 paise on May 19, and got costlier for the third time. In its last MPC, RBI projected the gross domestic product (GDP) growth for the current financial year (FY27) at 6.9 per cent and 7.6 per cent for the last financial year (FY26). RBI also raised the retail inflation projections for FY27 to 4.6 per cent from 4.2 per cent.
