The RBI’s Monetary Policy Committee wrapped its February 2026 meeting on 6 February with a unanimous call: hold the repo rate at 5.25%. The neutral stance stays. No surprises — but plenty of implications.
Why it matters
This is the first pause after a cumulative 125 basis points of rate cuts spread across FY25 and FY26. The RBI’s message is clear — the easing cycle has done its job for now. The focus shifts to letting past cuts transmit through the banking system.
The standing deposit facility (SDF) stays at 5.00% and the marginal standing facility (MSF) rate at 5.50%.
What it means for your EMIs
If you hold a floating-rate home loan linked to the repo rate (RLLR or EBLR), your EMI stays unchanged for now. Public sector banks are currently offering home loans in the 7.15–7.30% range.
The bottom line: on a Rs 50 lakh home loan over 20 years, the cumulative 125 bps reduction since early 2025 has already lowered monthly EMIs by roughly Rs 2,500–3,000 — saving about Rs 6–7 lakh in total interest. Those gains are locked in. Further cuts look unlikely in the near term.
What it means for deposits
FD rates are expected to hold steady. Since the bulk of the easing cycle appears to be behind us, banks are unlikely to slash deposit rates sharply. If you have been waiting to lock in an FD, now may be a reasonable window.
Growth and inflation outlook
The RBI pegged FY26 GDP growth at 7.4%, supported by resilient private consumption and government capex. CPI inflation for FY26 was revised to 2.1% — well below the 4% target. RBI flagged rising gold and silver prices as a risk that could push core inflation up by 60–70 basis points.
For FY27, inflation is projected at 4.0% in Q1 and 4.2% in Q2.
What’s next
The next MPC meeting is scheduled for 6–8 April 2026. Markets will be watching whether the committee signals any further easing or settles into a prolonged pause.