On April 8, 2026, the RBI's Monetary Policy Committee voted to hold the repo rate steady at 6.00%, marking the third consecutive pause after a series of cuts through 2025. Governor Sanjay Malhotra cited moderating inflation and resilient growth as the reasons for the wait-and-watch stance.
The bigger picture
CPI inflation has been trending below the 4% target for four months now, and core inflation has cooled meaningfully. GDP growth for Q3 FY26 came in at 7.2%, above consensus. On paper, that's space for a rate cut — but the MPC flagged global uncertainty and food-price risks as reasons for caution.
Impact on home loan EMIs
If you have a floating-rate home loan linked to the repo rate, your EMI stays unchanged. The reset will come whenever RBI next moves. If you've been waiting for a cut to refinance, you may have to wait another 2–3 months. Our EMI calculator can show you the savings from a 25 bps cut if and when it arrives.
Impact on fixed deposits
FD rates have started drifting down since the rate cuts of 2025. The pause gives you a brief window to lock in longer-tenor FDs at 7%+ before banks adjust further. If you were planning to park medium-term money, now might be the time.
Impact on debt funds
Long-duration debt funds have had a good run as rates fell. With the MPC pausing, the easy gains from duration plays are over. Rotate toward short and medium-duration debt funds for steady accruals from here.
Equity impact
Markets took the decision in stride — the Nifty 50 closed flat, and rate-sensitive sectors (banking, real estate, autos) were mixed. No surprises usually means no big moves.
What we're watching next
The June MPC meeting will be the next inflection point. If inflation stays soft and global growth holds up, a 25 bps cut is plausible. If oil spikes or the monsoon underwhelms, the pause extends.