RBI Holds Repo Rate at 5.25%; Industry Sees Boost to Growth, Liquidity and Consumer Confidence

Mr. Srinivasan Vaidyanathan, Operating Partner, Essar Capital

"The RBI's decision to maintain the repo rate at 5.25% with a neutral stance is a balanced response to a genuinely challenging macro environment. The more telling signal lies in the central bank's evident caution on inflation, againsta backdrop of elevated crude prices and a weaker rupee. This suggests that while the RBI remains supportive of growth for now, it is increasingly vigilant about external risks, and future actions will depend heavily on how energy prices and currency dynamics evolve. For capital-intensive businesses, the steadiness on rates is welcome, preserving the predictability that underpins long-cycle investment."


Dhanpat Nahata, Managing Partner, Essar Capital

"The RBI's decision was largely in line with market expectations, but the upward revision in inflation forecasts serves as a reminder that risks have not disappeared. With global uncertainty and energy prices rising, markets are likely to remain sensitive to inflation and currency developments. The neutral policy stance offers stability for now, but enterprises will continue to assess how evolving global conditions impact growth, liquidity and overall market sentiment."

Quote by Devanshu Bansal, Director, UK Realty-

"Over the past few months, the global economy has been shaped by heightened uncertainty, disruptions to key trade routes and supply chains, increased market volatility and cautious business sentiment. The RBI's decision to keep the repo rate unchanged at 5.25% bps aims at supporting economic growth and maintaining inflation stability across sectors. For the real estate sector, the lending rates are expected to remain steady, borrowers can continue to benefit from manageable EMIs and make informed home purchase decisions without concerns of immediate rate volatility. Importantly, the cumulative rate cuts witnessed over the past year have already improved affordability and savings for home loan customers. A stable interest rate environment strengthens buyer sentiment and consumer confidence which extendeds the spell of low home loan rates for borrowers." - Devanshu Bansal, Director, UK Realty.

Quote by Pralay Mondal, MD & CEO, CSB Bank

"The policy has taken a balanced approach of maintaining liquidity and growth along with keeping a watch on inflation. The shortage of dollar liquidity in the system has been addressed by a multi-pronged approach of increasing limits and reducing the costburden on market players and FPIs. This should yield positive results in terms of inflows in the medium term."