RBI MPC December 2025: Will Your Home Loan Become Cheaper This Time?

The Reserve Bank of India’s (RBI) Monetary Policy Committee meeting will start on Wednesday, December 3, and the announcement for the same is scheduled for Friday, December 5, at 10 am. Experts have diverse opinions about the expectation of a rate cut from the central bank. After assuming the office as governor, Sanjay Malhotra has reduced the repo rate by 100 basis points to 5.50 per cent. The meeting will be held from December 3 to December 5, and the announcement can be watched live on the social media handles of the RBI. If the central bank announces another rate cut this time, people will be able to reduce their EMIs further. This is the 5th and the last RBI MPC of the year. Praveen Sharma, CEO, REA India (Housing.com), noted, “Following the RBI’s decision to hold the rate in past meetings, the possibility of an immediate repo rate cut next month appears limited. The cumulative 100 bps rate cuts this year have already eased the burden on homebuyers significantly.” Sharma added, “If economic and inflation indicators remain favourable next month, a minor repo rate reduction could be possible, which might in turn bring down home loan EMIs. For now, the biggest positive is that the borrowing environment remains stable and highly supportive for buyers.” Ramani Sastri, Chairman and MD, Sterling Developers, said that the economy continues to be robust with significant investments across businesses in recent times. Within this landscape, India’s real estate market stands out as one of the most dynamic and fastest-growing in the world. “Real estate investments, hence, remain the most desired due to their strong base and reliability factor and as the sector continues to benefit from improved buyer sentiment and strong housing demand, we look forward to a supportive stance from the RBI in the upcoming monetary policy announcement. We are hopeful of a rate cut as it would be highly encouraging for homebuyers and developers alike, potentially boosting affordability and investments in the sector. It would also strengthen market confidence and also act as a strong signal of policy support for the real estate sector and the broader economy,” opined Sastri. Atul Monga, CEO & Co-Founder, BASIC Home Loan, believes that MPC will keep the repo rate unchanged, despite inflation showing signs of relief. “For homebuyers, this means EMIs may likely rise in the near future, offering stability over the next year. But doesn’t necessarily mean relief, considering many borrowers who took floating-rate loans in the last 18-24 months are still coping with higher repayment commitments,” he said. “For lenders, the rate pause could reinforce a cautious ‘wait-and-watch’ period. They will continue prioritising strong, salaried borrowers as they expand into tier-2 and tier-3 markets. The next big catalyst will come from policy clarity and structural reforms,” he noted. “A fundamental reform worth observing is the early conversation around GST2.0. A sharper, more efficient regime could ease the tax load on under-construction homes, streamline input tax credits and reduce costs for developers. If executed well, it could soften property prices and encourage competitive home loan rates, especially in the affordable housing segment. Doing so may create fresh tailwinds for lenders aiming to scale in this category. These developments are likely to influence the Union Budget 2026, which is expected to focus on housing-led growth, urban infrastructure and credit expansion. Today’s stable monetary environment gives policymakers the room to craft a strong, multi-year housing push that improves demand, supports construction jobs and positions housing finance as a key driver of India’s economic growth story,” highlighted Monga.