RBI MPC Meeting October 2025.

RBI Repo Rate Impact: The Reserve Bank of India (RBI) on Wednesday, October 01, decided to maintain the repo rate unchanged at 5.50 per cent for the 2nd time after three consecutive cuts earlier this year. This decision brings stability but no immediate relief or increase for borrowers or depositors.

The repo rate — the interest rate at which the RBI lends to commercial banks — was reduced earlier from 6.5% to 5.5% across two cuts, and now remains steady as the central bank waits to assess inflation trends and economic recovery.

Between May 2020 and April 2022, the RBI kept the repo rate steady at 4 percent. From April 2022 to February 2023, the RBI gradually increased the policy rates to 6.5 percent, maintaining this rate for two years until the recent reductions.

While the RBI’s status quo on the repo rate means no immediate changes in borrowing or deposit costs, the banks have the leisure to pass down earlier cuts benefits to customers.

Anuj Puri, Anarock said, RBI’s decision to keep the repo rate unchanged at 5.5% maintains home loan EMIs at current levels, which helps sustain buyer sentiment but does not improve housing affordability. This stability means existing home loan borrowers won’t see any immediate EMI changes, while new borrowers will find loan interest rates holding steady. As per latest ANAROCK data, Q3 2025 residential sales in India’s top 7 cities dropped 9% year-on-year to 97,080 units, yet overall sales value jumped 14% to INR 1.52 lakh crore, indicating demand shifted towards premium and mid-segment homes.

Keshav Mangla, GM Business Development at Forteasia Realty said, as the Reserve Bank of India has opted to keep the repo rate steady at 5.5%, home loan customers can expect to keep their monthly EMIs stable for the present. The unchanged rates are reassuring since there wouldn’t be any direct pressure on borrowing costs. At the same time, consumers would benefit from the GST rate reductions across a wide range of services and goods—from construction materials to allied housing services—adding another potential benefit for homebuyers. Customers will now have the benefit of having financing costs locked down, plus any reduction in GST would benefit homebuyers who may now see a reduction in related costs associated with the purchase or construction of a new home. Ultimately, this combination of factors will help reduce barriers to housing and demonstrate that moving from inaction to action is a lot easier.

Anurag Goel, Director at Goel Ganga Developments, added, the RBI decided to keep repo rates at 5.5 percent, taking a careful look at inflation and what the recent budget changes might do. This decision is good news for people paying off home loans. They’ll keep paying the lower rates from earlier this year. Plus, with GST cuts making building supplies, upkeep, and property-related items cheaper, housing is becoming more affordable overall. Buyers and developers are in a good spot because of these rule changes. It’s now simpler for people looking for a home to handle the money side of things. Developers can also more easily pass on lower costs. These steps together might really help more people buy homes in the next few months.

What This Means for Borrowers:

Since the repo rate remains unchanged:

• Existing borrowers will not see any change in their EMIs.
• New borrowers will find loan interest rates holding steady—for now.

Public and private sector banks are expected to maintain current rates on home, auto, and personal loans, unless they choose to adjust margins individually.

RBI Repo Rate Status Quo: Impact on Home Loan EMI

Example: Rs 50 lakh home loan for 30 years at 8.20% interest rate

• Current EMI: Rs 37,346
• New EMI: Rs 37,346
• Monthly Savings: Rs 0
• Annual Savings: Rs 0

Since the RBI kept the repo rate unchanged at 5.50%, your EMI stays the same.

RBI Repo Rate Status Quo: Impact on Personal Loan EMI

Example: Rs 5 lakh personal loan for 5 years at 12% interest rate

• Current EMI: Rs 11,122
• New EMI: Rs 11,122
• Monthly Savings: Rs 0
• Annual Savings: Rs 0

No change in EMI as interest rates remain steady.