As the Reserve Bank of India's Monetary Policy Committee (MPC) gears up for its first policy meeting of the financial year 2026-27, home loan borrowers are keeping a close eye on interest rates.
The six-member MPC will begin its crucial review on Monday, April 6, with the decision expected on Wednesday, April 8.
Why home loan rates matter now
Repo rate decisions directly influence lending rates offered by banks. When the RBI cuts the repo rate, banks often reduce interest rates on new and existing home loans, potentially lowering EMIs for borrowers.
What experts are saying
Experts predict that the RBI is likely to keep rates unchanged in April amid inflation concerns and global uncertainty, news agency PTI reported.
Aditi Nayar, Chief Economist, ICRA: "Given the uncertainty around crude oil prices and geopolitical developments, the RBI is likely to remain on pause in the April policy and closely monitor incoming inflation data before taking any further action."
Soumya Kanti Ghosh, Chief Economist, SBI: "India is feeling the impact of the current crisis. The rupee is hovering above 93 per dollar, and crude oil remains above USD 100 per barrel, pushing imported inflation across states."
Madan Sabnavis, Chief Economist, Bank of Baroda: "We do not expect any change in repo rate or stance this time. The tone will be cautious, with focus on RBI's GDP and inflation forecasts."
Since February 2025, the RBI has cut the repo rate by 1.25%, but rates were kept unchanged in August 2025, October 2025, and February 2026 policy reviews. With global volatility, the MPC is expected to proceed cautiously in its April meeting.
Home loan borrowers should monitor the RBI's announcements closely, as any change or decision to hold the repo rate will directly affect EMIs and borrowing costs in the months ahead.
The RBI typically conducts six bi-monthly meetings in a financial year, where it decides interest rates, money supply, inflation outlook, and various macroeconomic indicators.
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