RBI Monetary Policy Meet LIVE: RBI keeps repo rate unchanged at 5.5%, monetary policy stance ‘neutral’

Realtors' body CREDAI and NAREDCO on Wednesday urged the RBI to reduce the key repo rate in the next monetary policy to boost demand for residential properties, especially of affordable homes.
They also hoped that banks would pass on the benefits of previous rate cuts to existing and new home loan borrowers.
On Wednesday, the Reserve Bank of India (RBI) kept key interest rates unchanged as it waited for greater clarity on the impact of US tariffs as well as playout of earlier rate cuts and recent tax reductions. Since February, the repo rate has been cut by 100 basis points to 5.5 per cent.
Commenting on the RBI policy, CREDAI National President Shekhar Patel, said, "The RBI's decision to hold the repo rate at 5.5 per cent gives the housing sector the steadiness it needs amid global uncertainty. Predictable borrowing costs allow buyers to plan long-term and give developers the clarity to progress financing and projects." He noted that the recent GST rates rationalisation has lifted consumer sentiment and increased demand across sectors.
"While markets had anticipated a 25-basis point cut today, we remain hopeful the RBI will deliver a cumulative 50-basis point easing this fiscal in two tranches, which would further support activity," Patel said.
G Hari Babu, National President of NAREDCO, said, "The decision to keep the repo rate at 5.5 per cent alongside the projected real GDP growth of 6.8 per cent is welcome. However, just as the government has boosted various sectors by cutting GST, a reduction in the repo rate is needed to energise the real estate sector." He urged the RBI to consider bringing the repo rate below 5.5 per cent in the next MPC meeting.
"Lower interest rates will strengthen homebuyers' confidence, increase housing demand, and particularly benefit the affordable housing segment. Supporting industries linked to real estate, such as cement, steel, electricals, piping, and interiors, will also see growth," said Hari Babu.
CREDAI and NAREDCO are the two major industry bodies of real estate developers with a combined membership of more than 15,000.
-PTI

Vijay Harsh Jha, founder and CEO of property brokerage firm VS Realtors, said: "The housing sales and launches have shown considerable decline till Q3 and may even fall short of 2024 numbers. At this juncture, a cut in repo rate along with the GST cut that has been implemented, it would have propelled sales during the festive season. Banks must take the lead in passing on the previous cuts to homebuyers."

Ankur Jalan, CEO, Golden Growth Fund (GGF), a category II Real Estate focused Alternative Investment Fund (AIF), said: “In view of the ongoing trade concerns, the status quo on repo rate is a welcome move by the RBI. With interest rates slowing being transmitted, this along with cut in GST will provide impetus to the consumption demand in the economy and help shield India’s growth from the impact of ongoing trade tariffs.”

Bengaluru-based real estate developer Sanjeevini Group Chairman and Founder, Umesh Gowda H.A said:  "While we welcome the RBI’s decision to maintain status quo in view of the ongoing trade tensions, however, a cut in repo rate along with GST cut would have together made a huge impact on giving a spurt to demand. With slowing housing sales, it is imperative that a boost to the housing sector would go a long way in accelerating demand across all sectors."

Samir Jasuja, Founder & CEO, PropEquity, a NSE-listed real estate data analytics firm, said: "The housing market, despite dip in sales and launches, remains healthy. While a rate cut by the RBI would have benefited the sector, the festive quarter, nevertheless, will see improved launch momentum and higher absorption level. The recent GST cut will provide some relief to affordable and mid income housing.

Housing sales in India’s top nine cities fell by 4% in Q3 (July-September) 2025, settling just above the 1 lakh-unit mark at 1,00,370 units, according to a report by NSE-listed real estate data analytics firm PropEquity. New launches, however, remained flat, coming in below the 1 lakh mark at 92,229 units declining by 10% on Q-o-Q basis."

Chanchal Agarwal, CIO Equirus Family Office said, "The RBI Governor delivered a dovish pause, broadly in line with market expectations, signalling room for further accommodation should the headline inflation numbers be higher. A key positive development is the liberalisation of capital market lending norms. RBI raised prudential limits on loans against shares, financing against listed debt, IPO funding, and also allowed banks greater flexibility to extend credit for acquisition financing. This move is significant, as it enables banks to recapture flows that had increasingly shifted to structured credit players.In addition, policy thrust remained on widening credit intermediation – notably through measures permitting the expansion of Urban Cooperative Banks – aligning with the broader Viksit Bharat agenda of improving credit access and deepening the financial system.

CPI continues to moderate. Despite the stance, markets reacted cautiously – the 10-year benchmark yield hardened to ~6.6% post-policy, indicating that investors see limited scope for an extended easing cycle. Current projections suggest at most one additional cut, with the terminal repo rate likely to settle around 5.25%. From here, policy calibration will hinge on inflation anchoring and the trajectory of global monetary conditions."

Reserve Bank of India (RBI) Governor Sanjay Malhotra on Wednesday (October 1) said that while global trade tensions and tariff-related uncertainties, particularly with the United States, could weigh on external demand, a series of domestic reforms and favourable monsoon conditions are expected to offset these headwinds. Read more.

Bengaluru-based real estate developer Sanjeevini Group Chairman and Founder, Umesh Gowda H.A said, "While we welcome the RBI’s decision to maintain status quo in view of the ongoing trade tensions, however, a cut in repo rate along with GST cut would have together made a huge impact on giving a spurt to demand. With slowing housing sales, it is imperative that a boost to the housing sector would go a long way in accelerating demand across all sectors."

Mr. Jash Panchamia, Executive Director, Jaypee Infratech Limited, "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."

Indian shares held gains on Wednesday, after the Reserve Bank of India kept the repo rate steady as expected, while awaiting the impact of the frontloaded rate cuts and tax cuts amid lingering trade worries.
The Nifty 50 was up 0.18% at 24,652.7 and the BSE Sensex added 0.17% to 80,401.31, as of 10:12 a.m. IST. Both the benchmarks traded about 0.25% higher ahead of the RBI rate decision.
The central bank maintained a rate pause for the second straight policy meeting, after 100 basis point rate cuts in the first half of 2025.

Adhil Shetty, CEO, Bankbazaar said, "The RBI has kept the repo rate unchanged at 5.5% in today’s Monetary Policy Review. This pause comes after a cumulative 100-basis point cut since the start of the year, the benefits of which have already reached both borrowers and depositors.

For home loan borrowers, the rate cuts have meant significant relief. On a Rs.50 lakh loan for 20 years, the drop from 8.5% to 7.5% translates into savings of around Rs.7.5 lakh. If customers retain their earlier EMI levels, the savings can go up to Rs.15.4 lakh over the tenor. With banks maintaining their spreads and festive offers on processing fees and special rates, this is one of the best times in recent years to invest in a home.

For depositors, the trend has moved the other way. Fixed deposit rates above 7.25% are now confined to a few banks, with most large banks offering 6.75–7% for popular tenures. Senior citizens continue to enjoy a 25–50 basis point premium, but this window is narrowing. Even with no fresh cut today, the peak of deposit rates is behind us. Savers would do well to lock into multi-year deposits while these levels still hold.”

After the MPC meeting, RBI proposed risk-based insurance premium to incentivise sound risk management by banks. The RBI chief further said that the expected Credit Line framework will be made applicable from April 2027, provifing sufficient time to regulated entities to comply.

RBI Governor Sanjay Malhotra said that a total of 100 bps rate cut this year have led to 58 bps reduction in fresh loans. He further said that the credit growth continues to be supportive of real economic activity.

RBI chief Sanjay Malhotra said that the real GDP growth has been projected at 6.8 percent, projected at 7 percent for Q2 and projected at 6.2 percent for Q3.

RBI Governor Sanjay Malhotra announced that the MPC has decided to keep monetary policy stance unchanged at 'neutral' after the meeting.

RBI announced that the repo rate will remain unchanged at 5.5 percent. This is the second consecutive time that the repo rates have been kept unchanged.

Most economists expect that the MPC would continue to maintain the status quo in the upcoming monetary policy, to be announced on October 1. This would be the second time in a row that the RBI may take a pause. Between February and June 2025, the repo rate has been cut by 100 bps to 5.5 per cent currently. Read more.