The BRICS TimesRBI’s Monetary Policy Committee will meet from February 4–6. Experts predict a 0.25% cut in interest rates. This move will make home loans much cheaper for everyone.
The Reserve Bank of India will hold its next monetary policy meeting between February 4 and 6. Analysts expect a 0.25% reduction in the repo rate during this session. India’s economy is currently at a very critical stage. Therefore, many economists believe a 0.25% cut is highly likely.
RBI faces a major challenge in balancing inflation control and economic growth. The central bank is currently focusing on increasing liquidity in the market. Experts suggest RBI might lower the repo rate to 5.25%. This would help boost consumer spending and private investments across the country.
Massive Savings on Your Home Loan!
Any change in the repo rate directly impacts your home loan interest. If the RBI cuts the rate by 0.25%, your EMIs will drop. For a ₹50 lakh loan at 9% for 20 years, you save ₹800 monthly. The interest rate would drop from 9% to 8.75% in this scenario.
This change results in a total interest saving of ₹1.9 lakh. You can choose to reduce your monthly EMI amount. Alternatively, keep the EMI same to shorten the loan tenure by 10-12 months. This second option could save you over ₹4 lakh in total.
However, rating agency CRISIL offers a slightly different perspective on this matter. They suggest RBI might keep rates steady due to rising inflation. CRISIL stated, “Given the rise in inflation, we expect the RBI to keep policy rates unchanged for the time being.”
How much did Repo Rate fall in 2025?
The MPC has reduced the repo rate by 125 basis points since February 2025. Cuts of 25 bps occurred in February, April, and December last year. A significant 50 bps reduction was also seen in June 2025. Meanwhile, the RBI kept rates unchanged during the August and October reviews.
