Industry experts on Wednesday said that the Reserve Bank of India’s decision to maintain status quo on policy rates reflects a cautious approach amid global uncertainties and domestic growth considerations.
The Reserve Bank of India (RBI) kept the policy repo rate unchanged at 5.25 per cent in its first monetary policy announcement for the financial year 2026–27, citing rising global risks and geopolitical tensions.
Sujan Hajra, Chief Economist and Executive Director at Anand Rathi Group, said the decision was largely in line with expectations. He noted that the RBI is likely to follow a data-dependent approach going forward, indicating an extended pause in rates, while liquidity conditions may continue to be managed in an accommodative manner.
Rajeev Juneja, President of PHD Chamber of Commerce and Industry (PHDCCI), said that resilient domestic demand and inflation remaining within the 2–6 per cent target range have helped maintain stability while addressing emerging risks.
He added that improving export competitiveness remains crucial amid global trade disruptions and rising logistics costs, while expressing optimism about India’s medium-term growth outlook, supported by structural reforms.
Ranjeet Mehta, Secretary General and CEO of PHDCCI, said the policy reflects a careful assessment of both domestic and global macroeconomic conditions. He noted that while consumption and investment remain strong, rising global energy prices warrant continued vigilance.
Garima Kapoor, Deputy Head of Research and Economist at Elara Capital, flagged concerns over the potential impact of energy supply disruptions on growth projections. She said that rate hikes are unlikely unless inflation sustainably exceeds 6 per cent, but cautioned that the RBI’s 6.9 per cent growth estimate for FY27 may need reassessment due to ongoing global energy disruptions.
The real estate sector welcomed the decision, noting that stable borrowing costs support both buyer sentiment and project viability.
Anshuman Magazine, Chairman and CEO (India, South-East Asia, Middle East and Africa) at CBRE, said stable interest rates help keep EMIs predictable and manageable, supporting demand across residential and commercial segments.
Similarly, Shishir Baijal, Chairman and Managing Director at Knight Frank India, said the absence of rate volatility provides confidence to both homebuyers and developers.
Industry leaders added that a stable rate environment, combined with policy clarity, will help the real estate and construction sectors navigate cost pressures while sustaining growth.
Kirthi Chilukuri, Founder and Managing Director of Stonecraft Group, said stability in borrowing costs is essential for maintaining project viability and demand.
Sidharth Chowdhry, Managing Director of Dalcore, said the RBI’s measured approach would help sustain demand momentum, particularly in the residential segment.
-ANI
