RBI holds repo rate at 5.25% for a third straight meeting — what it means for EMIs and FDs
The MPC unanimously kept the repo rate unchanged at 5.25% and retained its neutral stance at the August 2026 review. Here's what the hold means for borrowers and depositors.
The Reserve Bank of India’s Monetary Policy Committee (MPC), meeting from 3-5 August 2026, unanimously voted to keep the repo rate unchanged at 5.25% and retained its “neutral” policy stance, Governor Sanjay Malhotra announced on Wednesday.
This is the third consecutive meeting the MPC has left rates untouched, following a cumulative 125 basis point rate-cutting cycle the RBI completed through 2025.
What else stayed the same
With the repo rate on hold, the linked rates are also unchanged:
| Rate | Level |
|---|---|
| Repo rate | 5.25% |
| Standing Deposit Facility (SDF) | 5.00% |
| Marginal Standing Facility (MSF) | 5.50% |
| Bank Rate | 5.50% |
Why the RBI held
Governor Malhotra said the decision reflected an assessment of “evolving domestic macroeconomic and financial conditions, as well as the global outlook.” He flagged that the continuing conflict in West Asia has disrupted trade routes and supply chains, increased market volatility and weakened business sentiment — with global growth expected to slow and inflation staying elevated through 2026.
Domestically, retail (CPI) inflation had climbed to 4.4% in June 2026, above the RBI’s 4% mid-point target, driven by food and transport costs. That kept the case for a rate cut off the table, while easing crude oil prices reduced the pressure for a hike.
What it means for you
- Floating-rate home loan and other EMI borrowers see no change this cycle — repo-linked lending rates stay where they are.
- Fixed deposit rates are likely to hold broadly steady at current levels, since banks typically don’t reprice FDs between MPC reviews unless liquidity conditions shift.
- Savers weighing a new FD can treat 5.25% as the base repo rate for at least the next two-month cycle before the RBI’s next review.
Use the EMI calculator to check your loan payout, the FD calculator to project deposit returns, and compare current bank FD and loan rates across lenders before locking in.
Source: RBI Monetary Policy Committee announcement, 5 August 2026; Business Standard.
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