RBI Maintains Repo Rate at 5.25%, Industry Leaders Share Views

The Reserve Bank of India has decided to keep the repo rate unchanged at 5.25%. Industry stakeholders from real estate and housing finance sectors said the decision provides policy stability and supports residential demand in the current macroeconomic environment.

The Reserve Bank of India (RBI) has announced that it will maintain the repo rate at 5.25%, continuing its current monetary policy stance. The decision follows cumulative rate cuts of 125 basis points in 2025, the impact of which is still being transmitted through the banking system.

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

Commenting on the decision, Mr. Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd., said:
“The RBI’s decision to hold the repo rate steady at 5.25% offers stability for interest-rate–sensitive sectors like real estate in the current macroeconomic environment. With inflation remaining at manageable levels and the benefits of earlier rate cuts continuing to flow through to homebuyers in the form of improved affordability, residential demand has remained resilient. The Union government’s decision to raise public capital expenditure to ₹12.2 lakh crore in FY27, as announced in the Union Budget 2026, further strengthens the growth outlook through infrastructure-led development.

Supported by stable monetary policy and sustained public spending, the real estate sector will continue to play a pivotal role in driving economic growth, employment generation, and urban development across the country.”

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

Mr. Ashok Kapur, Chairman, Krishna Group and Krisumi Corporation, also shared his perspective on the RBI’s move:
“The RBI’s decision to keep the repo rate unchanged at 5.25% reinforces policy stability and provides a supportive backdrop for the residential real estate market. While a rate cut would have lowered borrowing costs, a steady interest rate environment enables homebuyers to take long-term purchase decisions with greater confidence and predictability. This is particularly relevant for the premium housing segment, where buyers place stronger emphasis on product quality, location, and long-term value creation rather than short-term rate movements.

For developers, rate continuity allows for more disciplined planning of project launches, construction schedules, and capital deployment. With premium homes forming an increasing share of residential sales across key metropolitan markets, stable monetary policy is expected to help sustain demand momentum and reinforce positive sentiment over the coming quarters.”

Mr. Raoul Kapoor, Co CEO, Andromeda Sales and Distribution

Mr. Raoul Kapoor, Co CEO, Andromeda Sales and Distribution, said:
“The RBI’s decision to maintain a status quo on policy rates is largely in line with expectations, especially after the cumulative rate cut of 125 basis points in 2025. The transmission of these cuts is still playing out, with several banks yet to fully pass on the benefit to borrowers.

A cumulative reduction of 125 basis points over a 20-year loan tenure translates into an EMI reduction of approximately ₹80 per lakh per month, significantly improving affordability and enhancing borrowing capacity for big-ticket purchases such as homes.

For existing home loan borrowers currently servicing loans at interest rates above 8%, this presents a timely opportunity to negotiate better terms with their lenders or explore balance transfer options, as many banks are now offering home loans at interest rates close to 7.5% to new borrowers.”