RBI's MPC Expectations

Umesh Gowda H A, chairman and founder of Sanjeevini Group
"The upcoming RBI Monetary Policy Committee meeting comes at a time when the global economy is grappling with heightened geopolitical tensions, persistent supply chain disruptions and renewed inflationary pressures, particularly due to rising energy prices. In such an environment, we expect the RBI to prioritize macroeconomic stability over monetary easing. While a status quo on the repo rate appears to be the most prudent approach, the central bank's commentary on inflation and liquidity will be equally important. For the real estate sector, stable interest rates provide certainty to both developers and homebuyers, allowing investment and purchase decisions to continue without disruption. India's housing market has demonstrated resilience over the past few years, and policy stability will help sustain this momentum despite global uncertainties.”
Mukesh Choudhary, Managing Director, Accuspace, a real estate company
“The RBI faces the delicate task of balancing economic growth with inflation management amid an increasingly volatile global environment. Given the geopolitical risks and the possibility of elevated inflation, we expect the MPC to adopt a wait-and-watch approach. Such a stance would reassure both domestic and foreign investors who value policy consistency during uncertain times. For the real estate sector, especially commercial assets and institutional investments, predictable interest rates are often more valuable than abrupt policy shifts. A stable monetary environment supports long-term capital deployment, strengthens financing conditions and reinforces India's position as an attractive real estate investment destination.”
Ankur Jalan, CEO, Golden Growth Fund (GGF)
“The upcoming RBI Monetary Policy Committee meeting assumes greater significance amid escalating geopolitical tensions, volatile crude oil prices and persistent inflationary risks. In this environment, we expect the RBI to adopt a cautious and calibrated approach, with a status quo on policy rates being the most likely outcome. For real estate-focused AIFs, macroeconomic stability and policy predictability are more critical than short-term rate movements. A stable interest rate environment supports disciplined capital allocation, sustains investor confidence and enables developers to execute projects without facing abrupt increases in financing costs. India's real estate sector continues to benefit from strong structural demand, rapid urbanisation and increasing institutional participation. As long as inflation remains under control and financial conditions remain stable, the sector is well-positioned to attract long-term domestic and global capital. We believe a measured policy stance by the RBI will reinforce confidence among investors and further strengthen the investment case for professionally managed real estate assets.”
Lalit Parihar, Managing Director, Aaiji Group
“Escalating geopolitical conflicts have increased the risk of imported inflation through higher crude oil and commodity prices. In this backdrop, we believe the RBI will remain cautious and maintain its focus on anchoring inflation expectations. While the real estate sector always welcomes lower borrowing costs, preserving economic stability is a larger priority. A measured policy stance will reinforce investor confidence and ensure that financing costs remain predictable. The housing sector today is driven by genuine end-user demand and improved affordability, making it resilient enough to withstand a temporary pause in monetary easing. Once global uncertainties subside, the RBI will have greater flexibility to support growth through calibrated policy measures.”