RBI MPC Meeting Underway: Will Home Loan EMIs See a Reduction?

As the country awaits the formation of a coalition government led by the BJP, another significant decision looms on the horizon: will there be a reduction in home loan EMIs before the new government takes shape?

The answer to this question will be unveiled on Friday, coinciding with the conclusion of the three-day meeting of the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI).

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Monetary Policy Committee Meeting in Progress

The MPC meeting, commencing today, assumes particular significance against the backdrop of the recent election results.

Amidst expectations of a coalition government, attention turns to the potential impact on financial policies, including the crucial question of home loan interest rates.

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Expert Insights and Predictions

Reserve Bank Governor Shaktikanta Das is slated to disclose the outcomes of the MPC meeting on Friday.

However, experts anticipate that the RBI is unlikely to reduce the interest rate (repo), citing persistent concerns over inflation.

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The repo rate has remained stagnant at 6.5 percent since February 2023, reflecting the cautious approach of the central bank amidst economic expansion.

Future Outlook and Projections

Analysts suggest that the RBI may maintain its current stance in light of robust economic performance and inflationary pressures.

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Dhruv Agarwala, Group CEO of Housing.com and PropTiger.com, anticipates continued policy stability given India’s impressive growth trajectory.

Conversely, Anantharam Varayur, co-founder of Mansum Senior Living, expects potential measures to alleviate market liquidity constraints and bolster consumer confidence, potentially impacting real estate sales positively.


Inflation and Policy Targets

The RBI operates within the framework of maintaining retail inflation at four percent with a variation of two percent, a mandate handed down by the government.

As such, the decisions taken by the MPC not only impact monetary policy but also have wider implications for economic stability and growth.


As Friday approaches, all eyes are on the RBI’s announcements, which could have far-reaching consequences for homeowners and the broader economy alike. Stay tuned for updates as the story unfolds.

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