New Delhi: The Reserve Bank of India (RBI) announced its monetary policy today, 6 August 2025. This was the third bi-monthly Monetary Policy Committee (MPC) meeting for FY26, chaired by the RBI Governor Sanjay Malhotra. The MPC meeting was scheduled from August 4 to August 6, with the repo rate decision announced today.
RBI Monetary Policy 2025:
The RBI MPC decided to keep the repo rate unchanged at 5.50%, having already frontloaded easing through both a rate cut and a 100 bps CRR reduction earlier this year. The policy stance also remains ‘Neutral’.
Consequently, the standing deposit facility (SDF) rate under the liquidity adjustment facility (LAF) remains unchanged at 5.25% and the marginal standing facility (MSF) rate and the Bank Rate at 5.75%. This decision is in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2 per cent, while supporting growth.
In the June RBI policy, the central bank’s MPC surprised with a bumper 50 basis points (bps) cut in the repo rate to 5.50% from 6%. The MPC changed the policy stance to ‘Neutral’ from ‘Accommodative’, and also slashed the Cash Reserve Ratio (CRR) by 100 bps to 3% from 4% earlier.
Dr. Niranjan Hiranandani, Chairman, Hiranandani Group. said, “The RBI’s decision to keep the repo rate unchanged at 5.5% reflects a stable monetary stance, which is beneficial for the overall economy and the real estate sector. A stable interest rate ensures consistency in home loan affordability, supporting existing housing demand. However, considering the strong sentiment among homebuyers and investors, a marginal cut in the repo rate could have further eased borrowing costs and provided additional momentum to residential sales. While stability is important, a rate adjustment at this juncture might have helped strengthen growth in the sector and supported broader economic recovery more effectively.”
Jagannath Rao Bandari, President-Elect, Credai Hyderabad. said, “The RBI’s decision to hold the repo rate at 5.5% reflects a prudent approach that supports stability in Hyderabad’s real estate sector. While a 0.5% reduction could have further boosted homebuyer interest, the current steady stance fosters confidence among developers and investors. To accelerate housing demand, stakeholders should focus on innovative financing solutions and government incentives to enhance affordability and promote inclusive growth in Hyderabad’s dynamic market.”
Mr. Mohit Goel, Managing Director, Omaxe Ltd., says, “The RBI’s decision to maintain status quo on rates reinforces stability and supports long-term sentiment in the real estate sector. While affordability remains a key factor for homebuyers, especially in emerging cities, sustained policy consistency allows both developers and consumers to plan with greater confidence. We’re seeing strong traction in Tier-2 markets, where infrastructure growth and improving connectivity are translating into real demand. The current rate environment is well-aligned with the momentum we’re witnessing across these regions and expecting this to rise specially during the festive season.”
Mr. Venkatesh Gopalakrishnan, Director Group Promoter’s Office, MD – Shapoorji Pallonji Real Estate. said, “With a cumulative rate cut of 100 basis points since February 2025, the ongoing monetary policy transmission is gradually taking effect, and the full impact on the broader economy, including the real estate sector, is still unfolding.”
“From a housing perspective, especially in the affordable and mid-income segments, the current rate environment continues to offer conducive conditions for homebuyers. Steady interest rates help preserve affordability and sustain buyer sentiment, encouraging long-term investment in homeownership”. He added.
