The next monetary policy review meeting is being held from June 3 to June 5, and the country is closely watching the outcome, as it will directly impact interest rates and loan EMIs. The key policy decisions are scheduled to be announced on the final day of the meeting at 10 a.m. on June 5. In the previous review, interest rates were kept unchanged. This time as well, there is strong anticipation over whether the central bank will maintain its current stance or introduce changes in the policy rate. Economic experts are divided in their views. Some believe that rising crude oil prices, persistent inflationary pressures, and ongoing global geopolitical tensions could push policymakers towards increasing interest rates. Others are of the opinion that rates may be held steady for now, keeping the benchmark rate unchanged at 5.25 percent. Several reports indicate that even though retail inflation has shown signs of easing, rising food prices continue to remain a concern. This has kept policymakers alert, especially as major central banks across the world are postponing interest rate cuts. As a result, the likelihood of any immediate reduction in interest rates appears low. According to estimates, interest rates may need to be raised by at least 0.50 percent during the 2026–27 financial year to keep inflation under control. If this happens, borrowers could face higher loan costs in the future. For now, however, experts suggest that there may be no immediate change in monthly loan installments (EMIs). Since interest rates are unlikely to be reduced in the current review, borrowers with home loans, vehicle loans, and other retail loans should not expect any relief in their EMI burden at this stage. Those with loans linked directly to the repo rate are advised to closely monitor the policy announcement, as any future rate changes will directly affect their repayments. Meanwhile, rising crude oil prices pose an additional risk. Higher oil prices can lead to increased costs for fuel and transportation, which in turn may push up the prices of essential goods such as vegetables and groceries. This could increase the cost of living for households, even if interest rates remain unchanged. Another area of concern is the weakening domestic currency, which has fallen sharply against the dollar in recent months. A weaker currency increases import costs and adds further inflationary pressure, increasing the possibility of interest rate hikes in the future. Overall, while there may be no immediate impact on EMIs, inflation risks, global economic conditions, crude oil prices, and currency movements suggest that borrowers should be prepared for potential changes in interest rates in the coming months.