Repo Rate Unchanged At 5.25%, What It Means For Home Loan EMIs And Fresh Borrowers

The RBI’s Feb 6 policy outcome kept the repo rate at 5.25%, signalling a pause. Markets tracked low inflation (2.1%) and steady growth (7.4%).

On 06 February 2026, the Monetary Policy Committee (MPC) announced a status quo on the repo rate at 5.25%, with a unanimous vote and a neutral stance.

In its policy messaging, the central bank flagged inflation as benign while projecting FY25-26 CPI inflation at 2.1% and FY25-26 GDP growth at 7.4%.

The headline is a pause, but the real focus has shifted to how quickly banks pass on earlier cuts to borrowers, and whether liquidity stays comfortable.

Will Your Loan EMI Change After The Feb 6 MPC?

Since the repo rate stayed unchanged, repo-linked floating-rate borrowers are unlikely to see an automatic EMI reset immediately after 06 February 2026. The Economic Times also flagged that EMIs on repo-linked home loans are expected to remain steady after the decision.

However, borrowers on older benchmarks such as MCLR can still see slower transmission, depending on reset cycles and bank-level pricing.

Here is the post-policy rate corridor reported by TOI on 06 February 2026.
 

With these unchanged, near-term changes in retail loan pricing are more likely to come from banks adjusting spreads, or completing pass-through of earlier cuts, not from a fresh policy lever move.

Should You Wait For Another Repo Rate Cut Before Applying For A Loan?

If the purchase timeline is fixed, waiting only for a possible cut looks uncertain. A LoansJagat report dated 05 February 2026 said economists polled by Reuters expected the repo rate to stay at 5.25% through 2026, after cumulative cuts of 125 bps since February 2025.

Reuters policy-day report on Feb 6, 2026 also described economists expecting the RBI to stay on hold in the near term, with future moves tied to inflation and growth trends.

Has The RBI Changed The Inflation And GDP Targets?

This policy cycle did not announce a new “target” framework for inflation or GDP. What changed was the forecast guidance being tracked in coverage. Reuters reported the RBI raised its inflation projection for the current year to 2.1%, while noting growth expectation around 7.4%. 

TOI’s Feb 6 coverage also reiterated GDP growth at 7.4% and inflation at 2.1% for FY25-26.

The February pause followed a long easing phase. Reuters wrote on Feb 6, 2026 that the central bank has cut rates by a total of 125 bps since February 2025, including a 25 bps cut in the December meeting.

LoansJagat’s 05 February 2026 note echoed the same cumulative 125 bps easing and described the market narrative shifting from “another cut” to liquidity comfort and transmission.

Financial Express, in its live coverage updated February 6, 2026 (20:25 IST), reported the repo rate hold at 5.25% and highlighted the “neutral” stance while tracking the governor’s comments on external headwinds and trade-related optimism. 

Below is a snapshot of the macro projections repeatedly cited in policy-day reporting.
 

These numbers are a key reason the policy tone stayed cautious: inflation forecast looked low, growth projection stayed firm, and the next move was positioned as data-dependent rather than calendar-driven.

Statements By Stakeholders

Governor Sanjay Malhotra said inflation remains benign and rate actions ahead will depend on growth and inflation outlook. He also spoke about a proactive approach to liquidity management, with the RBI ready to act pre-emptively.

LoansJagat (dated 05 February 2026) cited economists expecting a prolonged hold at 5.25% through 2026, reinforcing a pause narrative.

Conclusion

The repo rate at 5.25% keeps EMIs largely steady for repo-linked borrowers right after 06 February 2026, unless banks tweak spreads. With 2.1% inflation and 7.4% growth projections in play, the next move looks data-led, not rushed.