RBI Keeps Repo Rate Unchanged at 5.5%: Real Estate Leaders React
RBI Maintains Repo Rate at 5.5%: Real Estate Sector Reacts
In its latest monetary policy announcement, the Reserve Bank of India has decided to keep the repo rate unchanged at 5.5%, aiming to balance economic growth and inflation control. The move comes amid cooling retail inflation, currently at a six-year low of 2.1% (June), and global trade uncertainties following the recent 25% U.S. tariff on Indian exports.
Industry Leaders' Perspectives
![]() | Ms. Manju YagnikVice Chairperson, Nahar Group & Senior Vice President, NAREDCO Maharashtra "By maintaining the repo rate at 5.5 per cent, the Reserve Bank of India is signalling a continued focus on balancing growth and inflation. With retail inflation cooling to a six-year low around 2.1 per cent in June and price pressures under control, the decision appears prudent and timely. Moreover, the recent imposition of a 25 per cent U.S. tariff on Indian exports adds uncertainty to global trade flows, making this cautious, steady policy stance even more relevant. For the real estate sector, a stable rate means continued affordability of home loans, especially critical in a market already seeing robust interest among mid- and premium-segment buyers. As we progress into FY26, this policy pause is likely to maintain homebuyer confidence and support sustained demand in high-growth micro-markets. Combining rate stability with strong urban infrastructure momentum and growing aspirations for lifestyle-driven housing, we expect this period to attract new buyers and investors alike, reinforcing long-term sector resilience." |
![]() | Dharmendra RaichuraVice President & Head of Finance, Ashar Group "The RBI's decision to hold the repo rate at 5.5% signals a sensible, growth-focused stance in the face of easing inflation and an uncertain global outlook. Following the recent 25% tariff imposed by US President Trump, which has added pressure to the economic cycle, maintaining rate stability provides much-needed reassurance especially for interest-sensitive sectors like real estate. For homebuyers, unchanged rates ensure continued affordability of home loans and support plans to upgrade to larger, future-ready homes. This steady policy direction is set to further strengthen the growth witnessed in dynamic markets such as MMR and Thane over recent quarters. We believe that a stable monetary environment, combined with rising incomes and sustained infrastructure development, will keep housing demand healthy through FY25, as buyers increasingly seek reliable developers, superior construction quality, and long-term value from their real estate investments." |
![]() | Sunny BijlaniManaging Director, Supreme Universal "RBI continues to signal its commitment by keeping the repo rate unchanged at 5.5% to nurture the economic growth while maintaining inflation in check. This policy consistency provides much-needed stability at a time when domestic activity needs support and global conditions are uncertain especially in light of the recent 25% tariff move by the US President, which has added volatility to international trade dynamics. For the real estate sector, stable rates help preserve home loan affordability, enabling homebuyers to confidently plan long-term investments. We expect this stance to sustain demand, where buyers look for both lifestyle upgrades and long-term capital appreciation. Additionally, continued infrastructure development, controlled inflation and rapid urbanisation will keep India's housing market attractive to both domestic and NRI buyers. Policy stability, combined with innovative product offerings and rising aspirations, is poised to drive steady growth across the real estate value chain." |