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

The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) decided to keep the repo rate unchanged at 5.25% during its meeting concluded on February 6, 2026.

Led by Governor Sanjay Malhotra, the committee unanimously voted for a status quo, maintaining its "neutral" policy stance. 

Prior to this pause, the RBI had undergone a significant easing cycle, cutting the repo rate by a cumulative 125 basis points (1.25%) throughout 2025. The last reduction occurred in December 2025, when the rate was lowered from 5.50% to the current 5.25%.

Samir Jasuja, founder and CEO, PropEquity: "Two consecutive years of decline in housing sales warranted a further repo rate cut by the RBI to ensure affordable credit for both homebuyers and developers. With the growth outlook remaining positive and inflation at record lows, an additional push to growth could have significantly improved sentiment in the real estate sector. However, beyond rate action, it is equally critical for the apex bank to ensure adequate liquidity in the system and effective transmission of rate cuts by banks to deliver meaningful relief to the sector."

According to PropEquity, housing supply declined by 12% to 3,96,062 units in 2025, while sales fell by 11% to 4,21,471 units, underscoring the need for supportive monetary conditions.

Ankur Jalan, CEO, Golden Growth Fund (GGF): "At a time when real estate demand has moderated and access to traditional financing remains selective, AIFs continue to play a critical role in providing structured, long-term capital to the sector. Real estate–focused AIFs are well positioned to bridge the funding gap through flexible capital structures, superior risk pricing, and asset-backed investments."

"While the MPC has maintained a status quo on the policy rate, a continued supportive monetary stance focused on ensuring adequate liquidity and smoother transmission will further enhance the appeal of real estate AIFs. For domestic investors, real estate AIFs offer portfolio diversification, predictable income streams, and the potential for capital appreciation. This positions AIFs as a compelling alternative investment avenue, supporting timely project execution while contributing to overall sectoral resilience and financial stability."

Lalit Parihar, Managing Director, Aaiji Group: "Given the favourable growth outlook, supported by a series of trade agreements and easing inflation, a further rate cut would have enabled businesses to access cheaper credit and undertake timely capacity expansion to meet both global export opportunities and rising domestic demand. With real estate playing a pivotal role in driving economic growth, additional easing would have provided much-needed relief to developers to respond to anticipated demand across segments, while also encouraging homebuyers to take quicker purchase decisions. Further monetary easing would have enhanced affordability, helping homebuyers absorb rising property prices and sustain momentum in housing demand."

Also Read: Chennai Housing Sales to Grow 2-5% in FY27: ICRA Report

Sidharth Chowdhry, Managing Director, Dalcore: "The decision to keep the repo rate unchanged at 5.25 % reinforces the macro stability that the real estate sector has been operating within over the past few quarters. For homebuyers, especially in the premium and luxury segments, this steadiness brings greater clarity on borrowing costs and supports confident long-term planning around high-value purchases. For developers, a stable rate environment improves visibility on funding, project execution, and capital deployment. The government’s increased capital expenditure in the recent Budget further reinforces this stability by strengthening the infrastructure backbone that sustains residential demand and helps crowd in private investment. The fact that inflation has remained within the desired range adds another layer of comfort for investors assessing long-term allocation decisions. Overall, this policy alignment supports a measured growth trajectory and strengthens the conditions for durable, value-led expansion that fits well with the vision of Viksit Bharat"