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News India Live, Digital Desk: We all have only one wish to get a message from the bank and it is written in it that your loan has become cheaper and now you will have to pay less EMI. Especially, when the festive season is over and the new year is about to come, this expectation increases further. But, if you are also dreaming of cheap loans, then a new report of ICICI Bank may spoil your mood a bit.
What does the report say? (straight talk)
ICICI Bank Global Markets has clearly indicated in its report that at present there is very little scope for further reduction in interest rates. The report believes that the Reserve Bank of India (RBI) is now on “long holiday” i.e. Extended Pause Is in the mood to.
In simple words, this means that the current interest rates are going to remain the same. Neither will it come down very fast nor will you get any major relief in EMIs.
Why has RBI stopped?
Now you might be thinking that everything is going well, then why this ‘break’? The real reason behind this is inflation and the pace of the economy.
The report suggests that whatever change (cut) took place in the repo rate in December, RBI now wants to see its impact. Governor Shaktikanta Das and his team do not want to take any hasty step which may cause inflation to rise again. Unless the inflation data becomes completely satisfactory, the chances of getting the next ‘good news’ from the RBI are slim.
What will happen in February 2026?
Everyone’s eyes are on the Monetary Policy (MPC) meeting to be held in February 2026. But ICICI economists believe that the status quo will probably remain in that meeting also. One reason for this is that the government is bringing a new base year for GDP and inflation figures. RBI would first want to understand these new figures and only then use the scissors.
What does this mean for the common man?
It simply means be patient. If you are planning to take a home loan or car loan, do not expect that the rates will fall significantly in the next month. Make your budget according to the current rates only. And those who have already taken loan on floating rate, they will have to travel a little more with their existing EMI.
