RBI Keeps Repo Rate Unchanged at 5.25%; Industry Sees Stability, Confidence and Growth Outlook Strengthens

The Reserve Bank of India (RBI) on Wednesday kept the repo rate unchanged at 5.25%, maintaining policy stability amid global geopolitical uncertainties and evolving economic conditions. Industry leaders from the real estate and MSME sectors welcomed the decision, saying it would support business confidence, keep borrowing costs predictable, and sustain housing demand. They noted that attractive home loan rates offered by commercial banks continue to encourage first-time homebuyers, while a stable interest rate environment provides growth-stage businesses with greater certainty for long-term capital planning. The decision is expected to strengthen overall market sentiment and support economic growth.

Mr. Jash Panchamia, Executive Director, Jaypee Infratech Limited, said, “The RBI’s decision to keep the repo rate unchanged at 5.25% reinforces stability and predictability in the housing market. Attractive home loan rates already being offered by commercial banks have significantly improved affordability, encouraging first-time homebuyers to take purchase decisions with greater confidence.”

Mr. Shrikant Goyal, Co-Founder, Getfive, an integrated capital raising platform for growth-stage MSMEs, said, “The RBI’s decision to maintain the repo rate at 5.25% underscores a stabilizing domestic economic landscape amid global energy and geopolitical uncertainties. For Indian small and medium enterprises (SMEs), this steady stance provides much-needed predictability for long-term capital structuring. As businesses look to scale, stable borrowing costs will serve as a strong foundation. At GetFive, we view this neutral stance as an opportune window for growth-focused companies to optimize their capital structures and strengthen their fundamentals.”

According to Mr. Pradeep Aggarwal, Founder and Chairman, Signature Global (India) Ltd., “The RBI’s decision to maintain the repo rate at 5.25% reflects a prudent and balanced approach at a time when the global economy continues to face geopolitical uncertainties and external headwinds. With inflation remaining within the central bank’s comfort range, policy stability provides much-needed confidence to both businesses and homebuyers.”

Mr. Vikas Bhasin, Managing Director, Saya Group, said, “A stable interest rate environment is positive for the real estate sector as it provides confidence and certainty to prospective homebuyers planning to finance their purchase through a home loan.”

Mr. Raoul Kapoor, Co-CEO, Andromeda Sales and Distribution, said, “The repo rate, which was last reduced to 5.25% in December 2025, has helped bring lending rates to very attractive levels for retail borrowers. As a result, home loan interest rates, which had crossed 9% a couple of years ago, have now softened to around 7%, significantly improving housing affordability.”