Quotes on RBI Monetary Policy (October 1, 2025)

Dr. Poonam Tandon, Chief Investment Officer at IndiaFirst Life:
"The RBI unanimously voted to keep the Repo rate unchanged at 5.50% and retained a neutral stance (4-2 votes). The MPC noted that inflation continues to remain benign with projections lowered to 2.6% while revising the real GDP growth projections upward to 6.8% in FY 25-26. The RBI also announced several key measures to strengthen the banking sector and improving credit flows pertaining to ECL provisioning framework, Basel III Capital adequacy norms, risk-based deposit insurance, relaxation in large exposure framework which are majorly positive for the capital markets as well. The Governor concluded that recent macro conditions have opened policy space for supporting growth. Overall, the policy decision seemed like a dovish pause, with an emphasis on data dependence."

Ankur Jalan, CEO, Golden Growth Fund (GGF), a category II Real Estate focused Alternative Investment Fund (AIF):
“In view of the ongoing trade concerns, the status quo on repo rate is a welcome move by the RBI. With interest rates slowing being transmitted, this along with cut in GST will provide impetus to the consumption demand in the economy and help shield India’s growth from the impact of ongoing trade tariffs.”

Vijay Harsh Jha, founder and CEO of property brokerage firm VS Realtors:
"The housing sales and launches have shown considerable decline till Q3 and may even fall short of 2024 numbers. At this juncture, a cut in repo rate along with the GST cut that has been implemented, it would have propelled sales during the festive season. Banks must take the lead in passing on the previous cuts to homebuyers."

Keshav Mangla, GM Business Development at Forteasia Realty:
“As the Reserve Bank of India has opted to keep the repo rate steady at 5.5%, home loan customers can expect to keep their monthly EMIs stable for the present. The unchanged rates are reassuring since there wouldn’t be any direct pressure on borrowing costs. At the same time, consumers would benefit from the GST rate reductions across a wide range of services and goods—from construction materials to allied housing services—adding another potential benefit for homebuyers. Customers will now have the benefit of having financing costs locked down, plus any reduction in GST would benefit homebuyers who may now see a reduction in related costs associated with the purchase or construction of a new home. Ultimately, this combination of factors will help reduce barriers to housing and demonstrate that moving from inaction to action is a lot easier.”

Anurag Goel, Director at Goel Ganga Developments:
“The RBI decided to keep repo rates at 5.5 percent, taking a careful look at inflation and what the recent budget changes might do. This decision is good news for people paying off home loans. They'll keep paying the lower rates from earlier this year. Plus, with GST cuts making building supplies, upkeep, and property-related items cheaper, housing is becoming more affordable overall. Buyers and developers are in a good spot because of these rule changes. It's now simpler for people looking for a home to handle the money side of things. Developers can also more easily pass on lower costs. These steps together might really help more people buy homes in the next few months.”

Jetaish Gupta, Founder and Director, Adore Group: 
“The RBI decided to keep the repo rate at 5.5 percent. This move points to a policy of neutral stability. It gives both home loan borrowers and people looking to buy a home some much needed clarity and peace of mind. We won't see EMIs drop right away. But, there's also no worry about loan interest rates going up, which can really impact family budgets. When you add in the GST rate cuts on things important for buying a home, housing is likely to become more affordable overall. Lower GST on construction and related services means developers and buyers will both notice costs dropping. This makes new projects more practical and homes more appealing. Because of all this, people's confidence in the real estate market will probably grow.”

Raghunandan Saraf, Founder & CEO, Saraf Furniture: 
“Since the RBI is keeping the repo rate at 5.5 percent, it looks like the retail and ecommerce sectors will do well. Consumer spending should stay steady, and borrowing costs will be predictable. Businesses can get working capital at these stable rates. This can help them build up inventory and improve their logistics. One thing that helps too is the recent GST rate cuts on many services and goods. Retail businesses will see their input costs go down. This means they could have better profit margins, or maybe even lower prices for shoppers. Ecommerce companies, especially those that depend on supply chains, will probably benefit from both the predictable borrowing costs and the GST changes. This kind of regulatory move suggests a focus on growth. It should encourage new ideas and competitive pricing in the market.”

Siddharth Maurya, Founder & Managing Director, Vibhavangal Anukulakara Pvt. Ltd.:
The RBI’s choice to keep the repo rate at 5.5 percent also brings some stability to how individuals and families manage their finances. Since loan interest rates aren't changing, people won't suddenly see their monthly payments for home, car, or personal loans go up. The recent GST rate cuts add to this stability. They're making everyday services, insurance, and certain financial products a bit cheaper. For people saving money, the current interest rate situation means their fixed deposit returns will stay consistent. Investors might find chances to grow their money as available funds support economic growth and how assets perform.
All these things together create a good situation for careful budgeting, saving for goals, and borrowing responsibly. It helps consumers plan things out with more confidence because the financial world feels less unpredictable.

Prashant Sharma, President, NAREDCO Maharashtra:
“The RBI’s decision to keep the repo rate unchanged at 5.5% with a ‘neutral’ stance is a welcome step for the real estate sector, especially during the festive season when home buying sentiment is at its peak. The rationalization of GST will provide a much-needed push to consumer confidence, offsetting inflationary concerns arising from global trade headwinds such as the additional US tariffs. With GDP growth projections revised upward to 6.8%, the overall economic outlook remains positive, and this will translate into healthier housing demand across segments.”

Kaushal Agarwal, Chairman, The Guardians Real Estate Advisory:
“The RBI’s status quo on repo rates for the second consecutive time ensures stability in borrowing costs, which is crucial during the ongoing festive season — traditionally the strongest period for home sales. Combined with GST rationalization, buyers are likely to benefit from a more transparent and cost-effective home ownership journey. Even though global pressures such as US tariffs may pose inflationary risks, India’s strong domestic fundamentals and higher GDP forecast will continue to drive the real estate market forward.”

Vikas Jain, CEO, Labdhi Lifestyle and President, NAREDCO Maharashtra NextGen:
“The RBI’s unchanged repo rate is in line with market expectations and will help sustain housing demand during the festive season. Developers can now focus on passing on benefits of GST rationalization to buyers, which will further stimulate consumption. India’s resilience and upward GDP growth outlook signals a conducive environment for long-term real estate investments.”

Shraddha Kedia-Agarwal, Director, Transcon Developers:
“The RBI maintaining the repo rate at 5.5% is a steadying move that brings confidence to homebuyers at a time when festive demand is peaking. GST rationalization is an added advantage as it lowers cost pressures, making homes more affordable. Despite global uncertainties like US tariffs, the central bank’s upward revision of GDP growth reflects the strength of India’s economy and will encourage more buyers to convert aspirations into purchases.”

Dhruman Shah, Promoter, Ariha Group:
“The RBI’s neutral stance and decision to hold the repo rate unchanged bodes well for the real estate sector. The festive season is a crucial window for developers, and stability in borrowing rates combined with GST rationalization will help in faster conversions. This stability not only boosts buyer confidence but also enhances affordability, which in turn will accelerate sales velocity and support developers in achieving stronger traction for their projects.”

Dharmakirti Joshi, Chief Economist, Crisil Ltd
“Contrary to our expectation of another cut in the repo rate, the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) has preferred to stay put, even as inflation has declined more rapidly than anticipated.
The MPC has revised its inflation forecast downward by 50 basis points (bps) to 2.6%, while increasing the GDP forecast by 30 bps to 6.8%.
Mint Road perceives risks around its growth projections to be balanced, affording it the elbowroom to wait and watch, given incomplete transmission of the previous policy rate reductions and lingering global uncertainties. Apart from monitoring transmission, it is keeping an eye on the ongoing cash reserve ratio cuts.
Several factors remain conductive for further monetary policy facilitation:
•    India’s gross domestic product growth is projected to slow in the latter half of this fiscal as the impact of higher US tariffs manifests, and a global economic slowdown becomes evident. This is despite the support to consumption from direct and indirect tax cuts.  If the US continues with the higher tariff levels, India’s exports will face challenges in the second half
•    Inflation is expected to remain low this fiscal, with the Consumer Price Index-based gauge averaging 2.4% and the Wholesale Price Index-based print at 0.1% in the first five months of this fiscal. The MPC has brought down its inflation forecast for this fiscal to 2.6% and trimmed for the first quarter next fiscal
•    China's excess capacity and low prices are contributing to disinflation in other economies, a trend likely to continue in the near term. Crude oil prices, too, are projected to remain soft
•    The US Federal Reserve's decision in September to lower its funds rate by 25 bps, and the expectation of further such moves, lends the MPC greater flexibility to consider further reduction in the repo rate
Given the turbulent times, fiscal and monetary authorities need to keep eyes peeled on exports, particularly from sectors that are employment intensive and dominated by MSMEs.”