The Reserve Bank of India (RBI) has decided to keep the repo rate unchanged at 5.25% following the conclusion of its three-day Monetary Policy Committee (MPC) meeting held from April 6 to April 8, 2026. The decision reflects a continued pause in rate action after a cumulative 125 basis points cut since February 2025, highlighting the central bank’s cautious stance amid evolving domestic and global economic conditions.
RBI Governor Sanjay Malhotra emphasized that the decision to maintain the status quo was driven by the need to carefully balance growth and inflation. While domestic inflation has shown signs of stability, rising global uncertainties, particularly due to elevated commodity prices and geopolitical tensions such as the Iran-US conflict, pose significant risks to the outlook.
The MPC has retained a neutral policy stance, indicating a “wait and watch” approach as it monitors incoming data. The RBI has projected consumer price inflation (CPI) for FY27 at 4.6%, with quarterly estimates ranging between 4% and 5.2%. Meanwhile, India’s real GDP growth is expected to moderate to 6.9% in FY27, supported by strong rural demand, improving urban consumption, and a sustained recovery in private sector investment.
The central bank also highlighted that system liquidity remains comfortable, with an average surplus of ₹2.3 lakh crore under the liquidity adjustment facility (LAF). It assured that it will continue to proactively manage liquidity to meet the productive needs of the economy.
For borrowers, the unchanged repo rate means that home loan EMIs are likely to remain stable in the near term, as most lending rates are linked to external benchmarks such as the repo rate. Similarly, depositors can expect fixed deposit (FD) interest rates to remain largely unchanged, as banks face no immediate pressure to revise rates.
The policy decision has been largely in line with market expectations, with analysts noting that the RBI is likely to remain data-dependent going forward. Experts also believe that liquidity conditions may continue to be accommodative, supporting economic activity without triggering inflationary pressures.
From a sectoral perspective, the real estate industry welcomed the move, stating that a stable interest rate environment helps sustain homebuyer confidence and supports ongoing demand. Industry stakeholders expressed optimism that a future rate cut could further boost affordability and investments.
Industry Expert Opinions
Mr. 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.:
Mr. Rahul Singla, Director, Mapsko Group
"The Reserve Bank of India’s decision to hold the repo rate steady reinforces a sense of stability and confidence in the real estate sector. For homebuyers, this is a strong signal that the market remains conducive for long term investment. It creates an encouraging environment where buyers can make timely decisions without uncertainty. At a time when owning a home is a key life goal, this stability presents a compelling opportunity to invest in a secure and appreciating asset."
Mr. Sandeep Agarwal, Executive Director - Finance and Group CFO, Elan Group
"Homebuyers would find comfort in the RBI’s decision to keep the repo rate at 5.25%, particularly in a market where time and affordability are critical factors. Buyers can plan their investments with more confidence and less financial anxiety when interest rates are stable, which offers much-needed clarity. From a real estate standpoint, this stability is probably going to maintain the pace of demand, especially in the mid and premium housing segments. Additionally, it strengthens market confidence and motivates fence-sitters to make wise choice. In general, a stable rate environment promotes a balanced ecosystem where developers and purchasers may proceed with more assurance and long-term visibility."
Mr. Dharmendra Raichura- VP & Head of Finance at Ashar Group
"RBI’s decision to maintain the repo rate at 5.25% reinforces stability for India’s real estate sector. Developers benefit from predictable funding costs, disciplined cash-flow planning, and uninterrupted project execution, with residential sales value continuing positive growth and strong collections. Homebuyers enjoy manageable EMIs and improved affordability, as household incomes are expected to outpace property price growth, supporting confident purchase decisions. This continuity strengthens overall market confidence, sustains demand across mid and premium segments, and enables measured growth. A stable rate environment fosters investor trust, encourages strategic launches, and reinforces long-term expansion across the residential real estate market."
Mr. 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."
Mr. 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. The slowdown in residential real estate accentuated by the ongoing West Asia conflict have necessitated that investors look for such alternative investment avenues that safeguard their returns."
Ms. Manju Yagnik, Vice Chairperson of Nahar Group and Senior VP, NAREDCO, Maharashtra
\
"The decision to hold the repo rate at 5.25% offers a stable and supportive environment for the housing sector’s ongoing growth. At a time when India’s residential market is experiencing steady, value-driven expansion with transaction values increasing by approximately 6% this consistency becomes particularly significant.
A stable interest rate regime ensures greater predictability in funding for developers, facilitating smoother project execution, while also enabling homebuyers to make long-term financial decisions with enhanced confidence. This continuity not only strengthens overall market sentiment but also sustains demand momentum across segments, reinforcing real estate’s standing as a resilient and progressively evolving asset class."
Mr. 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.”
Mr. 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."
Mr Sam Chopra, President and Country Head, eXp Realty India
"The RBI’s decision to hold the repo rate at 5.25% reflects strategic restraint in an increasingly volatile and globally interconnected environment. While the temporary two-week truce in the Iran–US–Gulf region has brought some short-term relief to markets, the underlying uncertainty remains intact. Continued volatility in oil, metals and the VIX indicates that risk sentiment is still elevated, and any optimism is likely to remain cautious in the near term. In this context, the RBI’s approach signals a clear intent to preserve flexibility rather than commit prematurely to a directional shift.
For real estate, this environment presents both caution and opportunity. Input costs may remain sensitive to global commodity movements, but at the same time, volatility in financial markets tends to redirect capital towards more stable, asset-backed investments. My view is that the RBI will continue in a calibrated wait-and-watch mode, relying more on liquidity and currency management tools while closely monitoring global developments. The current stance is not passive, it is deliberate, ensuring that policy remains responsive as clarity emerges over the coming weeks."
Mr. 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."
Mr. 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."
.png)