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 in the mood for a “long holiday” i.e. extended pause. In simple words, this means that the interest rates which are there at present are going to remain the same. Neither will they come down very fast nor are you going to get any big relief in EMIs. After all, why has RBI stopped? Now you must be thinking that everything is going well, then why this ‘break’? The real reason behind this is inflation and the movement of the economy. The report says that whatever change (cut) took place in the repo rate in December, RBI now wants to see its effect. 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 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.
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