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RBI holds repo rate at 5.25% for fourth straight review
The RBI’s Monetary Policy Committee unanimously kept the repo rate at 5.25% and retained its neutral stance on Wednesday. Governor Sanjay Malhotra said inflation could peak at 5.9% in the third quarter…
The Story in Brief
The RBI’s Monetary Policy Committee unanimously kept the repo rate at 5.25% and retained its neutral stance on Wednesday. Governor Sanjay Malhotra said inflation could peak at 5.9% in the third quarter of 2026-27 before moderating. The RBI projects real GDP growth at 6.7% for 2026-27 and CPI inflation at 5%.
The decision offers stable borrowing costs before the festive season. Real estate executives expect steady EMIs to support housing demand, though rising construction and labour costs may limit sales. Container glass makers welcomed predictable financing, but said fuel and LPG pressures remained a bigger concern. The RBI flagged energy prices, supply chains, geopolitical risks and uneven monsoon conditions as threats to growth and inflation.
The Indian Opinion
The easy narrative is that a rate pause guarantees a housing revival, while the opposite claim says it signals economic weakness. Neither follows from the decision. Stable EMIs can help buyers, but rising construction costs and a projected 5.9% inflation rate in the third quarter could constrain demand. The real test is whether growth reaches the RBI’s 6.7% forecast without CPI inflation moving above 6%.
Sources (4): timesnownews.com, timesnownews.com (2), timesnownews.com (3), timesnownews.com (4)
This story was synthesised by AI from the 4 sources linked above.
