Basant Bafna, Head – Fixed Income, Mirae Asset Investment Managers (India)-
"The RBI's current stance gives it flexibility to respond to changing liquidity conditions. Over the past few weeks, a mix of durable and short-term measures has ensured surplus liquidity, pushing overnight rates below the Repo and SDF levels. This has improved carry in money markets and led to a 20-30 basis point fall in money market yields. However, spreads over effective policy rates are still about 50-60 basis points higher than March levels, when liquidity was in deficit.
Markets had expected more clarity on liquidity measures or OMOs in the policy, and in the absence of that, bond yields moved up marginally by around 3-5 basis points. While changes in the CPI series could lift near-term inflation slightly, base effects should soften inflation over the next year. This may open limited room for a 25-basis point rate cut, though the RBI is likely to remain cautious depending on evolving Growth-Inflation dynamics. Current spreads between the repo rate and the 10-year benchmark remain attractive versus long-term averages. Incremental flows from long-only investor categories including provident and pension funds may gradually trickle into the SLR segment over FY 2027 as against allocations concentrated towards equity during FY 2026, thereby opening up space for yields to trend lower over time."
Mr. Umesh Uttamchandani, Managing Director, DevX-
“The decision to maintain the repo rate at 5.25% aligns perfectly with the growth oriented framework that complements the Union Budget 2026. By ensuring financial predictability, the central bank is fostering an environment ripe for long term investment. This stability is a massive catalyst for the managed office sector as it allows occupiers to plan without fear of volatility.
The policy continuity is further accelerating the movement of Global Capability Centers into Tier 2 and Tier 3 cities. Moreover, with the recent India US trade agreement and tariff reductions driving fresh demand from international enterprises, we are witnessing a dual benefit. These emerging markets are now viable growth engines due to untapped talent and better connectivity. We anticipate this stable rate regime will spur aggressive expansion and demand for flexible workspaces across both established hubs and these new regional frontiers.”
Monetary Policy Committee (MPC) of the Reserve Bank has decided to maintain the status quo on the policy repo rate at 5.25%, while maintaining neutral stance, given the backdrop of moderate headline inflation and high GDP growth for 2025-26 at 7.4% amidst geopolitical risks remains, said Mr. Rajeev Juneja.
On the inflation front, RBI's assessment that headline CPI inflation has remained benign, with projections of 2.1 per cent for 2025–26, provides comfort to both consumers and producers. Moderation in food prices, stable core inflation (excluding food and fuel), and adequate buffer stocks are positive factors for price stability and GDP growth.
At the same time, the RBI's acknowledgment of potential upside risks from geopolitical tensions, commodity price volatility, and precious metal prices highlights the need for continued vigilance, he added.
Stable interest rate environment, coupled with benign inflation expectations, can help sustain investment momentum. High capacity utilisation, healthy balance sheets of corporates and financial institutions, and robust credit growth are likely to support private sector investment decisions. The government's continued thrust on capital expenditure is expected to crowd in private investment and strengthen medium-term growth prospects, said Mr. Rajeev Juneja.
Near-term outlook suggests that food supply prospects remain positive on the back of healthy kharif production and favourable rabi sowing, said Mr. Rajeev Juneja.
RBI's positive outlook on the external sector, particularly the expectation that merchandise exports may receive a boost from recently concluded EU-India FTA and US tariff deal. Trade diversification will help mitigate risks arising from a volatile global trade environment. However, for sustained export competitiveness continued focus on logistics efficiency, trade facilitation, and access to affordable finance for exporters, especially MSMEs, said Mr. Rajeev Juneja.
RBI's decision is growth-supportive and confidence-enhancing for industry. A predictable monetary policy framework, combined with ongoing structural reforms and fiscal support through public capex, can help India sustain its growth trajectory at the same time navigating global uncertainties. Continued coordination between monetary and fiscal policy to strengthen India's macroeconomic fundamentals augurs well for long-term economic prospects, says CEO and Secretary General, PHDCCI, Dr. Ranjeet Mehta.
Yashank Wason, Managing Director, Royal Green Realty, says
RBI MPC's decision to keep the repo rate unchanged at 5.25% is a significant positive note for the real estate industry. The unchanged repo rate will significantly benefit both buyers and developers. For homebuyers, unchanged interest rates mean manageable EMIs which will improve the rate of potential purchasers. For developers this unchanged stance will accelerate the project launches and completion timeline.
Rajat Bokolia, CEO, Newstone says, "The recent RBI MPC meeting has decided to keep the repo rate unchanged at 5.25%, supporting the momentum for the real estate sector. It translates into stable home loans, directly improving housing demand with better liquidity for developers. This will ensure developers to accelerate project launches and completion timelines, securing an environment of prosperity and reliance across key real estate markets."
Jitender Yadav, Director, Roots Developers says, "The RBI's decision to maintain the repo rate at 5.25%, is a catalyst for renewed enthusiasm in the real estate sector. Stable borrowing costs will make home loans more affordable which will increase demand of home buyers. This will also help developers to speed up project launches and improve completion timelines, strengthening an environment of growth and confidence across key housing markets."
Sudeep Bhatt, Director Strategy, Whiteland Corporation says, "The RBI MPC has decided to keep the repo rate unchanged at 5.25%. It comes after RBI's December 2025 decision to slash repo rate, marking a cumulative cut of 125 basis points throughout 2025. The stance is significant for the real estate sector. It means stable home loans which directly boost housing demand, while improving liquidity for developers. The sector stands to benefit from the re - established buyer sentiment and a growth in investment appetite with EMIs and borrowing cost stabilising."
Rishabh Periwal, Senior Vice President, Pioneer Urban Land & Infrastructure Ltd., says, "The RBI Monetary Policy Committee's decision to maintain the repo rate at 5.25% provides much-needed stability to the real estate sector. This follows the cumulative 125 basis points rate reduction during 2025, which has already supported borrowing sentiment and improved affordability. A steady rate environment ensures predictability in home loan costs, encouraging buyer confidence and sustaining housing demand. For developers, stable funding conditions and improved liquidity visibility enable better planning of project launches and execution timelines. Overall, this decision reinforces a growth-oriented environment and strengthens confidence across key real estate markets."
Amit Prakash Singh, Co-founder & CBO, Urban Money
"From a mortgage and lending perspective, the RBI's decision to keep the repo rate unchanged at 5.25 percent provides much needed policy stability for the home loan market. With the benefits of earlier rate cuts yet to be fully transmitted, efficient and timely pass through by lenders will be critical to sustain demand. Stable rates improve borrower confidence, encourage planned credit spending and support disciplined balance sheet decisions, especially for first time homebuyers and upgraders who remain sensitive to even marginal changes in borrowing costs."
Kunal Shah, Co-founder, SURE
"The RBI's decision to keep the repo rate unchanged at 5.25% as the MPC committee believes that outlook on growth and inflation are positive. Successful completion of trade deal with US augurs well for growth and outlook on inflation is closer to 4% target. RBI has infused approximately Rs 13.70 lakh crores of liquidity in the banking system in current financial year (including dividend of Rs 2.70 lakh crores), apart from the this interest rates are reduced by 1.25%. Status quo will allow the economy to absorb the monetary changes introduced over the course of the last financial year. Neutral chance also ensure, RBI can deliver another rate cut if outlook on inflation turns favourable and global commodity prices normalise.
From a lending perspective, having maintained a neutral stance provides more certainty to both banks and borrowers on the earlier repo rate cuts. For borrowers, this stability means interest rates are less likely to see sudden movement. Existing borrowers will see more stable monthly outgo, while new buyers are better positioned to plan their home purchases with confidence, aided by predictable EMIs and stable rates improved affordability driven by prior easing."
Bhavin Patel, Co-Founder & CEO, LenDenClub & Vartis Platforms
"The RBI's proposed guidelines on preventing misselling, ensuring fair and transparent recovery practices, and clearly defining limited liability in unauthorised electronic transactions create greater accountability across the lending ecosystem. Similarly, the proposed compensation for losses arising from small-value fraudulent transactions acts as both a deterrent against misuse and a meaningful safety net for customers who become victims of fraud. At a time when digital adoption is accelerating alongside fraud risks, these measures help reduce fear, encourage timely reporting, and ensure that customers are not penalised for circumstances beyond their control. For users, this translates into greater confidence, safety, and clarity, and for the industry, it strengthens trust and responsible participation in digital and P2P lending." - Bhavin Patel, Co-Founder & CEO, LenDenClub & Vartis Platforms.
