Governor Malhotra remarked, “The MPC unanimously agreed to maintain the policy repo rate at 5.5 per cent. As a result, the Standing Liquidity Facility (SLF) rate stays at 5.25 per cent, while both the Marginal Standing Facility (MSF) rate and the bank rate remain at 5.75 per cent. The committee also chose to uphold a neutral monetary policy stance.”
A Look Back: What Happened in the August MPC Meeting?
At its last meeting in August 2025, the RBI had opted to keep the repo rate unchanged at 5.5 per cent, maintaining a neutral stance. This decision came just days ahead of new US tariffs that raised duties to 50 per cent from August 27. Despite global uncertainties, the central bank cited multiple positives on the domestic front, such as a strong monsoon season, softening inflation, improved industrial output, and stable financial conditions, as evidence of resilience in the Indian economy.
Reaffirming its confidence in India’s macro fundamentals, the RBI maintained its real GDP growth forecast at 6.5 per cent for FY26, crediting government-led infrastructure investments and a consistent monetary framework.
What Experts Say
Jash Panchamia, Executive Director, Jaypee Infratech Limited, said, “The RBI’s decision to keep the repo rate unchanged reflects a steady and supportive approach to maintaining economic stability, with inflation under control. Following earlier reductions, the current stance provides stability to the housing market, allowing homebuyers and long-term investors to plan confidently. The positive sentiment from the festive season, combined with the transmission of previous rate cuts, is helping maintain strong buyer interest.”
“For developers, consistent interest rates allow for careful planning and execution of projects. Coupled with attractive offerings and well-designed homes, demand remains robust across segments. This stable policy environment is expected to sustain market momentum, support ongoing project launches, and reinforce confidence in long-term growth, ensuring the housing sector continues to thrive and remains appealing to prospective buyers,” he added.
