RBI Holds Repo Rate at 5.50%, Real Estate Growth Steady

The Reserve Bank of India (RBI) has opted to keep the repo rate unchanged at 5.50% during its August 2025 Monetary Policy Committee (MPC) meeting, aiming to maintain economic stability amidst global and domestic uncertainties. This decision reflects the RBI’s balanced stance—fostering growth while keeping inflation under control.

RBI Governor Mr. Sanjay Malhotra stated in the Monetary Policy Statement,

“After a detailed assessment of the evolving macroeconomic and financial developments and the outlook, the MPC voted unanimously to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 5.50 per cent.”
He added,
“The uncertainties of tariffs are still evolving. Monetary policy transmission is continuing. The impact of the 100 bps rate cut since February 2025 on the economy is still unfolding.”

The real estate sector has positively received the decision, citing it as a stabilising move that promotes affordability and market confidence.

Mr. Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd., said,

“The RBI's decision to maintain the repo rate at its current level reflects a steady approach to supporting economic recovery amid stable inflation. With borrowing costs significantly reduced following three consecutive rate cuts, the current policy stance ensures continued affordability, as rates remain at comfortable levels. This is expected to sustain consumer confidence and support ongoing momentum in key sectors, including real estate.”

He noted that developers can maintain momentum, focusing on new housing supply—aiding GDP growth, job creation, and urban infrastructure development.

Mr. Ashok Kapur, Chairman, Krishna Group and Krisumi Corporation, observed,

“The RBI’s decision to keep the repo rate unchanged reflects a balanced approach amid ongoing global uncertainties. While a rate cut—as the real estate sector at large was hoping for—would have further accelerated the demand for homes across segments, borrowing costs continue to remain at relatively accommodative levels, supported by the cumulative 100 basis points reduction earlier this year. As a result, the growth of the housing market will likely continue on its upward trajectory.”
He added that stable interest rates and festive season demand would further boost mid and premium housing segments.

Mr. Sushil Bedarwal, CMD, Bedarwal Group, remarked,

“The RBI’s decision to pause the ongoing rate cut cycle is in line with the prevailing economic indicators and the current geopolitical environment. It is also important to note that the market is still in the process of fully absorbing the impact of the last three consecutive rate cuts, which together amounted to a significant 100 basis points reduction. The benefits of these cuts are expected to gradually reflect in improved credit offtake and increased consumer spending, particularly in the retail and housing sectors.”
He suggested a 25–50 bps rate cut could follow later this year if conditions remain favourable.

Mr. Raoul Kapoor, Co-CEO, Andromeda Sales and Distribution Pvt Ltd, added,

“As anticipated, the Reserve Bank of India (RBI) has kept the repo rate unchanged, despite favourable factors such as a good monsoon and inflation remaining well below the comfort level. The decision appears to be guided by ongoing geopolitical uncertainties and unresolved global tariff concerns.”
He expects the retail credit demand to rise further, especially for home and personal loans, and believes more repo rate cuts could occur in future MPC meetings depending on evolving conditions.