The Reserve Bank of India (RBI) has decided to maintain the repo rate at 5.25% following the first Monetary Policy Committee (MPC) meeting of the 2026-27 financial year, held on April 8, 2026.
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Led by Governor Sanjay Malhotra, the committee opted for a cautious “wait and watch” strategy. This decision is primarily driven by global uncertainties, including the ongoing conflict in West Asia, and the need to manage inflation while supporting a projected GDP growth of 6.9% for the upcoming fiscal year.
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Impact on Homebuyers and Borrowers
The status quo on the repo rate is a signal of stability for the real estate sector and retail borrowers.
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Stable EMIs: Since most home loans are now linked to external benchmarks like the repo rate, existing borrowers will not face any immediate increase in their monthly installments.
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Predictability: Prospective homebuyers can plan their purchases with the confidence that interest rates are unlikely to see a sudden spike in the near term.
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Refinancing Opportunities: Experts suggest that borrowers currently on older MCLR-linked loans should consider switching to repo-linked products to benefit from the cumulative 125 basis point cuts delivered by the RBI since early 2025.
Key Economic Indicators (April 2026)
The RBI has adjusted its projections to reflect the current geopolitical and domestic landscape.
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| Indicator | Value / Projection |
| Repo Rate | 5.25% (Unchanged) |
| Policy Stance | Neutral |
| FY27 GDP Growth | 6.9% |
| FY27 Inflation (CPI) | 4.6% (Estimated) |
| MSF & Bank Rate | 5.50% |
Expert Insights
Anuj Puri, Chairman of ANAROCK Group, noted that while the steady rate is a “welcome step,” elevated property prices remain a hurdle for the affordable housing segment. He believes the “balanced and cautious approach” will keep buyers engaged but may not provide the aggressive demand boost a rate cut would have offered.
Adhil Shetty, CEO of BankBazaar, highlighted that the 125 bps cuts seen since last year have already saved a borrower roughly ₹3,050 per month on a ₹50 lakh loan. He advised that those still paying 50 basis points or more above market rates should explore refinancing now while the environment is stable.
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