August 5, 2026: The Reserve Bank of India (RBI) on Wednesday kept the repo rate unchanged at 5.25%, with the Monetary Policy Committee (MPC) unanimously voting to maintain the benchmark lending rate during its August 3-5 policy meeting. The central bank also retained its neutral monetary policy stance, citing heightened global uncertainty and volatility arising from the continuing conflict in West Asia.
RBI Governor Sanjay Malhotra said the MPC arrived at the decision after assessing evolving domestic macroeconomic and financial conditions alongside the global economic outlook.
With the repo rate unchanged, the Standing Deposit Facility (SDF) rate remains at 5.00%, while the Marginal Standing Facility (MSF) rate and the Bank Rate continue at 5.50%.
The Governor noted that the ongoing conflict in West Asia has disrupted global trade routes and supply chains, increased financial market volatility, and weakened business sentiment. He added that global growth is expected to slow, inflation is likely to remain elevated through 2026, and uncertainty has intensified as major central banks continue to follow divergent monetary policy paths.
Pralay Mondal, MD & CEO, CSB Bank, said, The RBI's policy decision is largely on expected lines and reinforces macroeconomic stability. Despite supply-side challenges, inflation remains well contained, while the central bank's liquidity measures continue to support credit flow and economic growth. The proposed framework for interest rates on advances is a welcome step towards greater transparency and uniformity in loan pricing, ultimately benefiting consumers.
Anil Pharande, Founder & Chairman, Pharande Spaces
The RBI’s unanimous call to keep rates at 5.25% is kind of a welcome sign of stability for the real estate space. With no EMI jump coming into the picture, homebuyer mood stays guarded, particularly in the affordable along with mid-segment buckets. This little status quo gives fence-sitters that extra confidence to wrap up purchases in the middle of the ongoing festive stretch, without feeling like borrowing costs might creep up. Still, developers cannot get comfortable, because even though rates are steady the input costs are moving higher. So these pressures need to be absorbed from inside rather than just pushed onto buyers, so that affordability stays in place more or less, not gets diluted.
Siddharth Maurya, Managing Director of Vibhavangal Anukulkara Pvt Ltd
Now, a rate hold is better than a rate hike, sure, but 5.25% is still pretty elevated for first-time buyers in the affordable segment. The EMIs on ₹30–40 lakh loans remain steep and without an actual rate cut, the affordability gap doesn’t really close. The real lift for this segment will likely come from state-level support, or maybe higher PMAY allocations, not only from RBI decisions alone. Builders targeting this band should really intensify, using creative payment structures—like 5:95 plans—to bridge the difference. The neutral stance is reassuring but it doesn’t address the demand-side liquidity crunch that smaller buyers deal with every day.
Mr Aman Gupta, Director of RPS Group
In luxury and commercial real estate, the repo rate hold is almost beside the point, really—those buyers aren’t that EMI-sensitive, they’re more into capital growth and rental yields, that kind of thing. The real headache feels more like global uncertainty, and how it spills over into foreign institutional buying. Since rates are steady for now, we could see NRIs still channeling money into Indian real estate, attracted by reasonably stable outcomes. But developers have to keep an eye on the core inflation trail, very carefully; if it firms up, then the next move may get more hawkish, not softer. For now this pause helps us introduce fresh inventory, without that annoying distraction from loan rates that keep wobbling.
Nikhil Mawale - Co- Founder & CEO, PropertyDrone Realty
Keeping the repo rate at 5.25% with a neutral stance sounds sensible, but it doesn’t really juice up housing demand when inventory is already high. People hunting for rental income will likely like the predictable EMIs, yet possible price appreciation still depends much more on project delivery and whether the location truly makes sense, not on the direction of interest rates. So my take is simple don’t let the current situation create FOMO. Use the festive deals to push the negotiation, still be firm, but keep in mind that rates can only creep upward from here if global energy prices stay stubborn. Think of it as a window to buy wisely, not buy quickly. If you can, lock in fixed-rate loans now as a hedge against future uncertainty.
Mr. Jyoti Prakash Gadia, Managing Director, Resurgent India Limited
On expected lines, the RBI has kept policy repo rate unchanged at 5.25% with a continued neutral stance. The uncertainties due to the West Asia crisis and the resultant volatility in oil prices with an adverse impact on supply chains have weighed heavily in favour of a wait and watch approach.
Maintaining a status quo was a judicious option in the wake of uneven and deficient rainfall which would impact food prices. The trade- off between growth and inflation is at present at a challenging inflection point and a well considered policy rate change will require further examination of the ensuring macroeconomic situation.
A change in policy rate is therefore expected only after drawing inferences from the situation once clarity emerges in domestic as well as global scenarios.
There is, however, an apparent paradox in today's RBI statement as so far as the forecast of GDP and inflation numbers are concerned. The calculations behind the upward revision in GDP growth rate to 6.7% and downward revision of CPI inflation to 5% need to be further examined for better understanding. Perhaps the RBI is relying on a substantial increase in inward remittances and foreign direct investment inflows which may boost growth, while expecting a moderation in volatility in global prices.
On the liquidity front, the availability of the requisite support augurs well for the economy. The emphasis on financial stability and review of policy on urban cooperative banks and credit interest rates are also welcome steps for long term sustainable and inclusive growth.
Probe 42 Welcomes RBI's Rate Hold
“The RBI holding the repo rate at 5.25% is the right call inflation's still above target, and global trade policy is being rewritten every quarter. But honestly, for lenders, this holding pattern doesn't change much about the decisions they're making today.
When GDP forecasts come with this much uncertainty, the one thing you can actually rely on is what you know about the borrower in front of you. That's where we come in Probe42 gives lenders real, current visibility into a business: its financials, legal history, who's running it, what sector it's in. We're not betting on where the cycle goes next. We're just showing you what the business looks like right now. And honestly, that's the only thing that should matter when you're deciding whether to lend" , Prahlad Krishnamurthi, CEO, Probe42.”
Sam Chopra, President and Country Head, eXp Realty India
“The RBI’s decision to keep the policy repo rate unchanged at 5.25% comes at a time when global markets continue to face uncertainty from geopolitical developments and commodity price movements. In such an environment, a steady monetary policy provides businesses and investors with greater certainty for planning and investment decisions. For the real estate sector, stable interest rates help maintain buyer confidence while allowing developers to plan projects without the uncertainty of rising financing costs. Although global factors such as energy and raw material prices will continue to influence construction costs, India's domestic demand and ongoing infrastructure investment continue to provide strong support for the sector. A predictable policy environment is therefore important in sustaining long-term investment across residential and commercial real estate.”
