RBI Monetary Policy Reaction quote

Vinod Francis, SGM & Chief Financial Officer, South Indian Bank
"The RBI’s decision to maintain the repo rate at 5.25% while retaining a neutral stance reflects a calibrated and data-led approach amid heightened global uncertainty. While domestic growth remains resilient, the policy appropriately factors in rising upside risks to inflation, particularly from elevated commodity prices and geopolitical tensions in West Asia. The status quo provides much-needed stability to the financial system. A steady rate environment, supported by adequate liquidity, should continue to support credit growth across retail and MSME segments, while also strengthening asset-liability management for lenders. Overall, the policy strikes a prudent balance between growth support and inflation vigilance, reinforcing confidence in India’s macroeconomic resilience amid persistent external headwinds"

Sadaf Sayeed, CEO, Muthoot Microfin
:By holding rates steady and maintaining a neutral stance, the RBI has reinforced confidence in the resilience of the economy. This calibrated approach ensures stability today while preserving flexibility to respond to evolving global and domestic dynamics.”

V.P. Nandakumar, Chairman and Managing Director, Manappuram Finance
“The RBI MPC’s decision to keep the policy repo rate unchanged at 5.25% while maintaining a neutral stance is largely on expected lines and reflects a cautious, data-dependent approach amid heightened global uncertainties, particularly ongoing tensions in West Asia.
While domestic macroeconomic fundamentals remain resilient, the MPC has rightly highlighted emerging upside risks to inflation, driven by potential increases in crude oil and other commodity prices, along with possible supply-side disruptions. Although headline inflation remains within the target range at present, the evolving global environment warrants continued vigilance.
The policy stance provides stability while allowing flexibility to respond to changing growth-inflation dynamics. Additionally, the RBI’s continued focus on streamlining regulatory frameworks and improving ease of doing business is expected to support credit flow, enhance operational efficiency for financial institutions, and strengthen the broader financial ecosystem.
Measures aimed at facilitating MSME financing and broadening participation in financial markets are also likely to improve liquidity conditions and support sustained credit growth.”

Ram Raheja, Managing Director, S Raheja
“The RBI’s decision to hold rates at 5.25% reinforces policy consistency at a time when global uncertainty and rising crude prices could have warranted a more reactive stance. Instead, it reflects confidence in the underlying strength of the Indian economy. With GDP projected at 6.9% in Q1 FY27 and private sector investment continuing to hold, the fundamentals remain intact. At this point, the repo rate is no longer the primary driver of demand in the luxury housing market—it’s simply a signal of stability. Credit growth and sustained greenfield FDI interest further indicate that the growth story is not just cyclical, but structural. In Mumbai, luxury homebuyers are increasingly making decisions independent of short-term rate movements. They are driven by long-term value, design, and trust. A stable macro environment doesn’t create demand—it validates it.”

Nikhil Madan, MD Mahima Group
“RBI’s decision to hold rates and maintain neutral stance signals a calibrated pause not complacency. Amid rising global uncertainties, geopolitical tensions to crude driven inflation risks and currency pressures, central bank is clearly prioritising macroeconomic stability over short term stimulus. For real estate, this translates into continued demand resilience supported by strong credit growth and steady end user sentiment, even as rate cuts remain off the table in the near term. Equity markets may see intermittent volatility, but the underlying growth trajectory hovering around the 6.7to 7.2% range keeps India firmly positioned as a relative bright spot. The real inflection now hinges on how sustainably private capex cycles and consumption momentum can offset external shocks.”

Shilpa Bhatter, Chief Financial Officer, UGRO Capital
“The Reserve Bank of India’s decision to keep the repo rate unchanged at 5.25%, while reiterating a neutral policy stance, reflects a calibrated and forward-looking approach amid evolving global and domestic uncertainties. This stance preserves policy flexibility while anchoring macroeconomic stability.
With CPI inflation projected at 4.6% for FY27 and core inflation expected to remain around 4.4%, the current rate setting ensures that real interest rates stay modestly positive. This supports price stability without impeding growth, striking an effective balance between inflation management and economic momentum. The prevailing system liquidity surplus of approximately ₹2.3 lakh crore under LAF enhances the efficiency of ALM for financial institutions, while sharpening the focus on disciplined loan pricing—particularly in MSMEs, where yields remain highly sensitive.
This is complemented by structural enablers such as the inclusion of NBFCs in the term money market, which broadens access to diversified short-term funding and reduces reliance on expensive funding sources. Additionally, the relaxation in TReDS onboarding norms is a timely measure that will accelerate receivables financing for MSMEs, a segment that contributes nearly 30% to GDP.
Overall, these policy measures collectively enhance funding flexibility, credit transmission, and balance sheet growth for NBFCs, while strengthening credit access for MSMEs—reinforcing the resilience of the broader financial ecosystem in an uncertain global environment.”

Prakhar Agrawal, Director, Rama Group
“RBI’s decision to maintain the repo rate at 5.25% reflects a balanced and prudent approach amid evolving global uncertainties. This stability in interest rates is a positive for the real estate sector, as it sustains buyer sentiment and keeps home loan EMIs predictable for end-users. In an environment where inflation risks persist and global headwinds remain, a steady rate regime provides developers and homebuyers the confidence to plan long-term investments. We believe this move will continue to support housing demand, particularly in the mid-income and premium segments, while reinforcing overall market stability.”

Ritesh Taksali, Chief Investment Officer, Edelweiss Life Insurance
“The MPC has decided to be cautious given the volatile situation and the nascent ceasefire agreement.  The upward revision on inflation and lowering of growth for FY27 shows that there could be some lasting effects from the conflict.”

Sam Chopra, President and Country Head of eXp Realty India
"The RBI’s decision to hold the repo rate at 5.25% reflects strategic restraint in an increasingly volatile and globally interconnected environment. While the temporary two-week truce in the Iran–US–Gulf region has brought some short-term relief to markets, the underlying uncertainty remains intact. Continued volatility in oil, metals and the VIX indicates that risk sentiment is still elevated, and any optimism is likely to remain cautious in the near term. In this context, the RBI’s approach signals a clear intent to preserve flexibility rather than commit prematurely to a directional shift.
For real estate, this environment presents both caution and opportunity. Input costs may remain sensitive to global commodity movements, but at the same time, volatility in financial markets tends to redirect capital towards more stable, asset-backed investments. My view is that the RBI will continue in a calibrated wait-and-watch mode, relying more on liquidity and currency management tools while closely monitoring global developments. The current stance is not passive, it is deliberate, ensuring that policy remains responsive as clarity emerges over the coming weeks."

Umesh Gowda H A, chairman and founder of Sanjeevini Group
“The RBI’s move to keep the policy rates unchanged at 5.25% amidst the geopolitical tensions is a good move aimed at stabilising interest rate environment while being watchful of rising inflation and growth. A stable interest rate environment bodes well for the real estate sector even as homebuyers continue to take the benefit of earlier rate cuts. Supported by sustained public spending and a buoyant office market, the residential sector looks at a stable growth going forward.”

Ankur Jalan, CEO, Golden Growth Fund (GGF)
“We welcome the decision of the RBI to maintain status quo in policy rates amidst the ongoing conflict in West Asia, signaling the apex bank’s consistent monitoring of the inflation and growth dynamics. A stable policy environment will support India’s economic growth and help attract capital in financialised products like Alternative Investment Fund that invests in mature and diversified asset classes.
The ongoing conflict also gives HNIs and NRIs an opportunity to realign their investment and safeguard their returns through such financialised products.”

Lalit Parihar, managing director, Aaiji Group
“The housing market is going through some corrections after years of record sales. The conflict has further added to this pain. Amidst this environment, keeping the rate unchanged is a welcome move to help shore up confidence in the real estate sector by enabling borrowers to avail the full benefits from complete pass down of earlier rate cuts. Fiscal and monetary measures will help cushion the impact of the shocks and give a boost to the real estate sector going forward.”