RBI Holds Repo Rate at 5.25% Amid Global Uncertainty

The Reserve Bank of India on Wednesday kept the policy repo rate unchanged at 5.25 per cent in the first monetary policy announcement of the financial year 2026-27, citing rising global uncertainties and geopolitical tensions.

Announcing the decision, RBI Governor Sanjay Malhotra said that the Monetary Policy Committee (MPC) unanimously voted to maintain the policy repo rate under the liquidity adjustment facility at 5.25 per cent.

The MPC meeting was held on April 6, 7 and 8 to assess the evolving macroeconomic and financial conditions before arriving at the decision.

Key Highlights

• RBI keeps repo rate unchanged at 5.25% amid global risks
• Geopolitical tensions and energy prices drive inflation concerns
• India’s economy remains resilient despite global volatility

Also Read: RBI & MPC decided to keep the repo rate unchanged at 5.25%

Governor stated “After the detailed assessment of the evolving macroeconomic and financial developments and the outlook, the MPC voted unanimously to keep the policy repo rate unchanged under the liquidity facility at 5.25 per cent. Consequently, the SDR rate remains at 5 per cent and the MSF rate and the bank rate at 5.5 per cent.”

“Consequently, the Standing Deposit Facility (SDF) rate remains at 5 per cent and the Marginal Standing Facility (MSF) rate and the bank rate at 5.5 per cent,” he said.

The central bank noted that the policy comes at a time when the global economy is facing significant challenges due to heightened geopolitical tensions, particularly the ongoing conflict in West Asia, along with disruptions in global supply chains.

The RBI Governor said that before the outbreak of the conflict, India’s macroeconomic fundamentals reflected strong growth and low inflation. However, conditions turned adverse in March as the conflict widened and intensified.

Despite these challenges, he emphasised that India’s economic fundamentals remain strong and are better positioned compared to previous crisis periods and many other economies, providing resilience against global shocks.

He highlighted that global growth is facing downside risks due to rising energy prices and shortages of key inputs, which have increased inflation concerns and pushed up geopolitical risk premiums in oil markets.

Heightened uncertainty due to the conflict has also impacted financial markets globally. Safe-haven flows have strengthened the US dollar, putting depreciation pressure on currencies of major economies.

Also Read: RBI Repo Rate Outlook: What SBI Research Predicts for Home Loans

At the same time, commodity prices such as metals and gold have moderated, while financial markets have witnessed increased volatility. Equity markets have seen broad-based corrections, and sovereign bond yields have hardened due to inflation fears and concerns over long-term fiscal sustainability.

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),  a category II Real Estate focussed Alternative Investment Fund (AIF): "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."

Lalit Parihar, managing director, Aaiji Group, a Dholera-based real estate firm: "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."

Adhil Shetty, CEO, BankBazaar: "The RBI has held the repo rate at 5.25% for the second consecutive meeting, but the context this time is meaningfully different. This is not a routine pause. The MPC has flagged a supply shock driven by the West Asia conflict, with crude oil surging well above its own planning assumptions. The unanimous decision to hold reflects a deliberate choice to wait and watch before acting in either direction."

"Home loan borrowers on repo-linked products are already seeing the benefit of the 125 basis points delivered since early 2025. On a ₹50 lakh, 20-year loan, that translates to an EMI saving of around ₹3,050 per month and a lifetime interest saving of ₹7.34 lakh. On a ₹75 lakh loan, the monthly saving is approximately ₹5,800, with total interest savings of ₹13.94 lakh. A rate hold keeps these gains intact. Borrowers still on MCLR-linked products are not seeing this benefit automatically and should switch to a repo-linked loan without delay. Those paying 50 basis points or more above current market rates should explore refinancing now."

"On fixed deposits, select private bank tenures are offering up to 7.4%, with several others in the 7–7.2% range. Senior citizens can add another 25–50 basis points on most products. The rate trajectory from here is genuinely uncertain — the MPC has warned that a supply shock could evolve into a demand shock if energy prices stay elevated. Depositors would be well-advised to lock in at current levels rather than assume rates will stay where they are."

"Laddering across multiple tenures manages reinvestment risk without sacrificing near-term returns. PPF at 7.1% and SCSS at 8.2% remain compelling sovereign-backed complements to bank FDs.

For equity investors, the picture is more nuanced than in a typical rate pause. Financial markets have turned volatile, and the MPC itself has flagged risks to consumption and investment from higher energy costs and supply chain disruptions. Sectors such as banking, real estate, auto and consumer durables remain structurally well-positioned as the cumulative easing works through the economy — but near-term headwinds are real. For SIP investors, maintaining consistent monthly contributions through this period of uncertainty remains the most effective long-term strategy."

Ashish Narain Agarwal, Founder & MD of PropertyPistol: “The RBI’s decision to hold the repo rate at 5.25% underscores the importance of stability in today’s uncertain global environment. For the real estate sector, consistency in borrowing costs is more valuable than short-term rate cuts, as it keeps EMIs predictable and sustains homebuyer confidence. This steady stance will continue to support demand, particularly in the mid-income and affordable segments, while reinforcing long-term market resilience.” 

Vishal Raheja, Founder & MD, InvestoXpert Advisors: “The RBI’s status quo reflects a strategic shift from stimulus-driven growth to stability-led consolidation, which is exactly what the real estate sector is seeking in the current cycle. With global volatility, currency pressures, and rising commodity risks in play, a predictable interest-rate environment enables better investment planning, disciplined pricing, and efficient capital allocation. For investors, this translates into more sustainable returns rather than speculative upside. Coupled with structural enablers like infrastructure push, REIT financing access, and steady demand recovery, the sector remains fundamentally strong—where stability, not just rate cuts, is emerging as the key catalyst for long-term value creation.” 

Sudeep Bhatt, Director Strategy, Whiteland Corporation: "The RBI MPC has decided to keep the repo rate unchanged at 5.25%. The stance is significant for the real estate sector. It means stable home loans which directly boost housing demand, while improving liquidity for developers. The sector stands to benefit from the re - established buyer sentiment and a growth in investment appetite with EMIs and borrowing cost stabilising."

Yashank Wason, Managing Director, Royal Green Realty: "RBI MPC’s decision to keep the repo rate unchanged at 5.25% is a significant positive note for the real estate industry. The unchanged repo rate will significantly benefit both buyers and developers. For homebuyers, unchanged interest rates mean manageable EMIs which will improve the rate of potential purchasers. For developers this unchanged stance will accelerate the project launches and completion timeline."

Rishabh Periwal, Senior Vice President, Pioneer Urban Land & Infrastructure Ltd.: “The RBI Monetary Policy Committee’s decision to maintain the repo rate at 5.25% provides much-needed stability to the real estate sector.  A steady rate environment ensures predictability in home loan costs, encouraging buyer confidence and sustaining housing demand. For developers, stable funding conditions and improved liquidity visibility enable better planning of project launches and execution timelines. Overall, this decision reinforces a growth-oriented environment and strengthens confidence across key real estate markets.”

Abhay Mishra, CEO & President, Jindal Realty: "The decision to hold the repo rate steady offers a sense of continuity at a crucial time for the real estate sector. It reassures homebuyers by keeping borrowing costs stable and helps sustain demand momentum. For developers, it provides clarity for planning and execution. Going ahead, policy support and improved liquidity will be key to unlocking the sector’s full potential and ensuring steady, inclusive growth across markets."

Rajat Bokolia, CEO, Newstone: “The recent RBI MPC meeting has decided to keep the repo rate unchanged at 5.25%, supporting the momentum for the real estate sector.  It translates into stable home loans, directly improving housing demand with better liquidity for developers. This will ensure developers to accelerate project launches and completion timelines, securing an environment of prosperity and reliance across key real estate markets.”

Jitender Yadav, Director, Roots Developers: "The RBI’s decision to maintain the repo rate at 5.25% is, a catalyst for renewed enthusiasm in the real estate sector. Stability in borrowing costs will make home loans more accessible which will increase demand of home buyers. This will also help developers to speed up project launches and improve completion timelines, strengthening an environment of growth and confidence across key housing markets. We look forward to a pragmatic environment for the real estate industry."