Will RBI surprise you again? Will home loans become cheaper or not? Know the opinion of experts on the expectation of repo rate cut..

The three-day meeting of the Monetary Policy Committee (RBI MPC Meeting August 2025) of the Reserve Bank of India (RBI) is starting today, i.e., 4th August. After this meeting, RBI Governor Sanjay Malhotra will announce the next repo rate (RBI Repo Rate Decision). If you are waiting for the interest rate to decrease on a home loan or any loan (RBI Interest Rate Cut), then the decision coming on 6 August 2025 can be important for you.

The question is, will there be a cut in the repo rate again this time? And if this happens, will your home loan EMI also be reduced? Let us know the opinion of experts and what could be the stance of the RBI in the current situation.

It has been cut three times so far. Will the interest be reduced again?
RBI has already cut the repo rate three times in a row, which has reduced the total by 100 basis points, i.e., 1%. Currently, the repo rate is at 5.50%. This is the rate at which banks take loans from the RBI. On this basis, interest on loans and EMI is decided.

Some experts believe that the RBI can now stop and keep the repo rate stable this time. They say that in June, the inflation rate, i.e., retail inflation, was 2.1%, which is quite low. In such a situation, the RBI can take some time to see the effect of the cuts made earlier.

Some experts expect more cuts.

However, many experts are also saying that in the current situation, the RBI can cut another 25 basis points, i.e., 0.25%. ICRA Chief Economist Aditi Nair says that the new tariffs imposed by the US and global uncertainty may affect GDP growth. In such a situation, the RBI can make one last cut so that growth is supported.

Dharmakirti Joshi, Chief Economist of Crisil, also believes that the threat to growth is greater than inflation at the moment, so the RBI can cut the rate by 25 basis points.

The SBI report also expects a reduction in the repo rate.

SBI's research report says that if the RBI cuts now, then its benefit will be directly seen in the festive season. The bank believes that the festive season is already approaching, and if the repo rate decreases, then credit growth, i.e., loan demand, may increase. The report warns that the RBI should not delay, otherwise the right time may pass.

CareEdge Ratings says that RBI has already cut the repo rate, and now its effect needs to be seen for some time. He said that unless there is a major decline in growth, there will be no further reduction.

Bank of Baroda's Chief Economist Madan Sabnavis says that June's inflation rate or America's tariff policy will not make any significant difference to the policy now. RBI has already considered this data. Therefore, there will be no change at the moment, but the tone, i.e., the statement, will remain cautious.

Inflation under control, concern over oil prices and tariffs

The government has given the Reserve Bank a target of 4% inflation with a 2% margin. Inflation in June was 2.1% which is very low in this range. But crude oil prices and tariffs imposed by the US are still a cause of concern.

Will EMI decrease or not?

RBI's MPC meeting is very important. Some experts hope that there will be another small cut, which can make home loans cheaper. At the same time, some experts believe that the RBI will wait for now. Now it remains to be seen which path the RBI adopts on August 6.

If you are also thinking of taking a home loan or are already paying EMI, then definitely keep an eye on this meeting of the RBI