The Reserve Bank of India’s Monetary Policy Committee (MPC) has kept the repo rate unchanged at 5.50% in its August 2025 meeting, aiming to maintain economic stability amid global and domestic uncertainties. The move reflects the RBI’s balanced approach to supporting growth while keeping inflation within its target range.
“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,” RBI Governor Mr. Sanjay Malhotra said in today’s Monetary Policy Statement.
“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,” Mr. Malhotra added.
The real estate sector has welcomed the RBI’s decision to maintain the status quo on the repo rate, viewing it as a stabilizing move amid ongoing global and domestic uncertainties. Developers and homebuyers alike see this as a positive signal, as stable interest rates help sustain affordability and confidence in the housing market.
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.
The unchanged policy stance is set to keep the real estate sector’s growth momentum on track. With steady interest rates and strong consumer confidence, developers are expected to meet the sustained demand for quality housing through greater focus on new offerings. This sustained activity will further strengthen the real estate sector’s contribution to GDP growth, job creation, and the expansion of urban infrastructure in the coming quarters.”
Mr. Ashok Kapur, Chairman, Krishna Group and Krisumi Corporation, said, “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.
With the festive season approaching, stable interest rates and the continued transmission of past rate cuts are expected to keep housing demand buoyant—particularly in the mid and premium segments. Backed by a positive buyer outlook and attractive developer offerings, market sentiment remains strong, and we anticipate steady sales momentum in the months ahead.”
Mr. Sushil Bedarwal, CMD, Bedarwal Group, said, “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.
The encouraging news is that India’s economic growth continues to be resilient. If macroeconomic conditions remain stable and supportive, we anticipate the RBI may resume the rate cut cycle with a further reduction of 25–50 basis points during the remainder of this calendar year.”
Mr. Raoul Kapoor, Co-CEO, Andromeda Sales and Distribution Pvt Ltd, said, “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.
However, the cumulative 100 basis points cut over the last three Monetary Policy Committee (MPC) meetings has already reduced borrowing costs significantly. As noted by the RBI Governor, the full impact of these rate cuts is still unfolding, and we expect retail credit demand—particularly for home and personal loans—to gain further momentum in the coming months, driven by the upcoming festive season.
We believe this is not the end of the current rate cut cycle, and we anticipate further easing in the repo rate in subsequent MPC meetings, depending on evolving macroeconomic condition.”