What the repo rate means for your EMI
Source: Reserve Bank of India · Last updated July 2026
Current repo rate
6.50%
A year ago
6.50%
The repo rate is the interest rate at which the Reserve Bank of India lends money to commercial banks. As of July 2026, the repo rate stands at 6.50%, unchanged from the previous year.
Why it matters to you
If you have a home loan or any loan with a floating interest rate, a change in the repo rate can directly change your EMI. A lower repo rate generally means lower EMIs over time, while a higher rate means the opposite.
EMI Impact Example
A 0.5% increase would add ~₹1,484 to your monthly EMI
The bigger picture
The RBI adjusts the repo rate mainly to control inflation. The RBI's inflation target is 4% with a tolerance band of ±2%. When inflation rises above the target, the RBI may raise rates to cool down the economy. Currently, inflation has been trending well below the target at 1.7%.
What to watch for
- MPC meetings: The Monetary Policy Committee meets every 2 months. The next meetings are scheduled for August 3-5, 2026, and October 5, 2026.
- Inflation data: The RBI's target is 4% inflation. Higher inflation usually means higher rates.
- Global trends: US Fed rate changes often influence RBI decisions.
Source
Reserve Bank of India, Monetary Policy Committee statements. Figures reflect the most recent policy announcement as of July 2026.