India’s central bank has maintained the repo rate at 5.25%, opting for continuity in its February 2026 policy review. The decision provides near-term stability for borrowers and savers, even as expectations of a further rate cut had been building among households. With the policy rate unchanged, borrowers with floating-rate loans are unlikely to see any immediate change in their EMIs. In most cases, loan repayments only move when banks reset lending rates or adjust spreads, so a pause typically means EMIs neither rise nor fall automatically. As a result, cheaper credit may take longer to reach consumers despite earlier rate reductions since early 2025. For savers, the decision keeps the current fixed-deposit rate environment largely steady. Banks continue to offer competitive returns on longer tenures, with some senior citizen deposits still earning up to 7–7.5%. However, deposit rates can be repriced quickly once system liquidity improves, making timing an important consideration for those locking in returns. The broader backdrop remains complex. Bond yields have stayed relatively firm even after earlier policy easing, influencing how efficiently lower rates are transmitted through the banking system. At the same time, global uncertainties have increased, while recent trade developments have provided some support to the economic outlook. The policy stance remains neutral, signalling that future rate moves will be guided by incoming data on inflation and economic growth rather than market speculation. For households, the message is clear: the central bank has prioritised stability for now, and any further easing will depend on how macroeconomic conditions evolve in the coming months. Overall, borrowers benefit from predictability, while savers are encouraged to plan deposits carefully, balancing current returns against the possibility of future repricing.