Quote: Sundeep Mohindru, Founder & Promoter, M1xchange

“The RBI’s decision to keep the repo rate unchanged at 5.25 per cent, while continuing with a neutral stance, reflects a balanced approach. The proposal to increase collateral-free loan limits for MSMEs to ₹20 lakh is a positive step and will provide much-needed liquidity support to small businesses that often struggle to offer traditional collateral. This move also follows the Union Budget announcement of a ₹10,000-crore growth fund for the MSME sector, reinforcing the focus on improving access to credit. The continued emphasis on timely and mandatory payments to MSMEs through platforms like TReDS highlights the importance of transaction-based financing to improve cash flows and ensure faster and more efficient credit access for MSMEs.”

Quote: Nitin Bavisi, CFO, Ajmera Realty 

The decision to keep the repo rate unchanged is a positive move for the real estate sector, as it will help maintain the sales momentum, and keep it ongoing by offering homebuyers stability in home loan rates. The Indian real estate sector has showcased significant growth, backed by favourable economic factors leading to strengthened liquidity in the hands of the masses, thus inspiring homebuyers to upgrade to a better living. 

Parallelly, the opening up of scope for lending to REITs will go a long way in instilling confidence, especially in overseas investors, ultimately boosting FDI inflows into the country. Going forward, as India continues on its growth charter, residential real estate is increasingly emerging as a preferred investment avenue, given the factors including security and lucrative returns. We are optimistic about the growth environment continuing to flourish on the back of a supportive economic growth that will encourage the RBI to ease further the repo rate, which will boost housing demand.

Moreover, RBI’s move to maintain the interest rates at the same levels is a reflection of the confidence that India is exhibiting high economic growth while being cautious regarding the inflation, which is largely benign. The move to dismantle the Rs 2.5 lakh crore cap under the Voluntary Retention Route is a strong step for attracting foreign capital.

In addition, the finalization of the revised ECB framework facilitates better and easier hit funding along with improved liquidity for Indian companies. With these initiatives, the investor outlook and real growth can be boosted in the real sector as a whole.

Quote: Sanjay Kumar, CEO & MD, Rassense

“The news of the RBI keeping the repo rate unchanged in status quo is a relief to the food services industry, which is also very sensitive to inflation and the prices of agri-commodities. With the likelihood of a healthy kharif production supported by strong food supply forecasts, sufficient grain stocks, and good rabi sowing, the input pressure is expected to be within a range in the near future. Also, more credit facilities will be provided to MSMEs to support supply chains and help small food businesses grow operations effectively.

On balance, the forecasts and the steps declared in the budget towards the agriculture sector reflect a strong future that will eventually improve production and lead to the domestic consumption of both the urban and the rural segments. Though this provides a good working environment, the industry needs to be on the alert for any derailment caused by weather unpredictability and world geopolitical growth.”

Quote: Colin Shah, MD Kama Jewelry, on RBI Monetary Policy

“The fact that the RBI is not increasing interest rates along with a benign inflation is a good sign of reassurance to the export-based industries such as gems and jewellery as the RBI has indicated that the economy is not undergoing any financial crisis. 

India has demonstrated economic strength by its steadfast core inflation and outlook on prices of precious metals being within a range offer much-needed predictability to businesses in a highly global and price-sensitive market as it is in our case.

The strong forex reserves and the initiative of liquidity management by the RBI will contain the excessive volatility in the rupee which is important to the exporters and importers of gold and diamonds as they bear a heavy currency exposure. 

Although there are global geopolitical risks and energy prices volatility items that should be closely monitored, general macroeconomic stability and the stable GDP growth pattern contributes to strengthening the confidence concerning the manufacturing and export environment in India.

In the case of the gems and jewellery industry, such policy orientation will help in facilitation of trade financing and inventory planning and the development of demand momentum, especially with the gradual stabilisation of the global markets.”

Quote: Gaurav Garg, Lemonn Markets Desk

The Reserve Bank of India’s (RBI) Monetary Policy Committee has kept the repo rate unchanged at 5.25%, indicating comfort with the current policy setting and no immediate need to act. Maintaining a neutral stance and refraining from liquidity measures underscores a preference to remain data-dependent rather than move ahead of the cycle.

Inflation projections of 4.0% for Q1 FY27 and 4.2% for Q2, along with a domestic outlook that remains positive despite external headwinds, reflect confidence in the macro trajectory. However, the emphasis on evolving conditions signals that policy is not on autopilot. If the data cooperates, market attention is likely to shift from the pause to the timing of the eventual move.

Quote: Kunal Varma, founder and CEO, Freo

As digital payments continue to grow across India, strengthening safety and customer protection becomes increasingly important. The RBI’s proposal to introduce calibrated safeguards is aimed at reducing fraud and building greater trust in digital payments, especially for users who may be more vulnerable, while keeping the system easy and accessible

By keeping rates unchanged and maintaining a neutral stance, the RBI has signalled continuity in policy while acknowledging easing inflation. The focus on liquidity management reflects a balanced approach, allowing room to support growth while remaining mindful of global uncertainties.

Quote: Vinit Bolinjkar – Head of Research – Ventura

“The latest Monetary Policy Committee (MPC) decision by the Reserve Bank of India to keep the repo rate unchanged at 5.25% and retain a neutral stance underscores a calibrated stance in the face of mixed macro signals. The committee noted that headline CPI inflation remains well below the RBI’s tolerance band, with December readings near historic lows, keeping inflation expectations anchored. Meanwhile, real GDP growth continues to outperform, with projections above 7% for FY26, supporting the case for stability in borrowing costs. This pause after a cumulative 125 bps easing cycle reflects confidence in domestic demand and ongoing trade-boosting developments, while also keeping room to respond to global uncertainties and commodity-price risks. Future actions will remain data dependent, balancing price stability with growth impetus.”

Quote: Vinod Francis, Chief Financial Officer, South Indian Bank

The RBI’s decision to keep the repo rate unchanged at 5.25% while maintaining a neutral stance reflects confidence in a benign inflation outlook and resilient economic growth. The upward revision in FY26 GDP growth, along with the RBI’s assessment that system-level parameters for banks remain sound, reinforces confidence in the sector’s ability to support sustained economic expansion. For banks, a stable rate environment enables effective transmission of policy measures, disciplined balance sheet management, and calibrated credit growth across key segments.

The continued focus on data-driven policymaking, supported by the upcoming new GDP and inflation series, further enhances predictability for lenders. At the same time, initiatives such as the proposed guidelines for Kisan Credit Cards and the ongoing emphasis on MSME and rural credit align well with our strong presence in these segments, positioning the Bank to deepen credit penetration while maintaining asset quality and capital strength.

Quote: Nikhil Madan, MD Mahima Group

“The Monetary policy committee’s decision to maintain a steady rate environment when seen alongside the Union Budget’s clear emphasis on strengthening Tier2 infrastructure, creates a supportive backdrop for sustained growth beyond the metros. Stable borrowing costs improve buyer confidence and project feasibility while continued public investment in connectivity, urban infrastructure and regional economic hubs is accelerating the maturity of cities like Jaipur. Together these factors reinforce the shift in housing demand towards Tier2 markets, where improving livability and long-term capital appreciation are increasingly converging.”

Quote: Pramod Kathuria, Founder & CEO, Easiloan

The RBI has decided will not change it’s repo rate of 5.25% and also has adopted a neutral policy; in this context policy continuity from the RBI will support the strengthening of the domestically generated growth momentum. The upgradation of GDP forecasts also indicates confidence in consumption as well as demand from investments in public infrastructure; therefore, we expect that businesses will take these factors into their consideration in developing investment plans across all business sectors.The Hon. Minister of Finance indicated that the recent adjustment of inflation expectations are a great opportunity for all businesses to be disciplined with respect to costs and pricing. The combination of stable interest rates with improved growth visibility will provide an excellent environment for companies to begin building their long-term capacity, while at the same time remain flexible and responsive to global economic uncertainties.

Quote: Shilpa Bhatter, Chief Financial Officer, UGRO Capital

“The RBI Monetary Policy Committee’s decision to maintain a neutral stance and keep the repo rate unchanged at 5.25% is a prudent and well calibrated step in the current macroeconomic environment. India’s growth outlook remains resilient with inflation stable. The RBI’s continued emphasis on financial inclusion, customer protection and improved credit flow particularly the enhancement of collateral free MSME loans to ₹20 lakh will meaningfully enhance access to credit and ease the cost of doing business. The focus on deepening the domestic debt capital market is a welcome move as is the liberalisation of ECB guidelines and the lifting of the cap on VRR which will enable greater participation by foreign debt investors. Overall the policy strikes the right balance between inflation management and sustainable credit expansion for India Inc especially the MSME sector.”

Quote: Vinit Bolinjkar – Head of Research – Ventura

“The latest Monetary Policy Committee (MPC) decision by the Reserve Bank of India to keep the repo rate unchanged at 5.25% and retain a neutral stance underscores a calibrated stance in the face of mixed macro signals. The committee noted that headline CPI inflation remains well below the RBI’s tolerance band, with December readings near historic lows, keeping inflation expectations anchored. Meanwhile, real GDP growth continues to outperform, with projections above 7% for FY26, supporting the case for stability in borrowing costs. This pause after a cumulative 125 bps easing cycle reflects confidence in domestic demand and ongoing trade-boosting developments, while also keeping room to respond to global uncertainties and commodity-price risks. Future actions will remain data dependent, balancing price stability with growth impetus.”

Swaminathan: Reviewing validity period of KCC loans. Review of kisan Credit Card Scheme is routine, not related to any concerns.

Guv on agri loans: There is no cause for concern

Guv: It is early days. we have not done an assessment of the GDP growth push due to the US-India trade deal. But it could be 20 bps

The policy rates will continue to be at low levels for a long period of time, says RBI Guv

Guv on UPI: We will find a way of sustaining the payments sector so that all stakeholders are considered

Dy Guv Swaminathan: increase in gold loan as a percentage of overall loans is not unexpected… This shift is aided by increase in gold price

Guv: MSMEs are growth engines; the collateral-free limit of ₹10 lakh was there for quiet some time; so, the increase in limit to ₹20 lakh is indexing for inflation

Dy Guv Murmu: Proposing ₹25,000 one-time compensation if customer loses money… this is a way of providing some relief to the customers

Guv: We will be issuing a framework to compensate those who have lost money in fradulent transaction

Guv: It has been our conscious effort to improve customer-centricity; mis-selling has been a concern; we have codified them; we will be issuing guidelines

Guv: On the deposits, policy transmission happens slower; on the loans side, rates are linked to external benchmarks

Guv: On gold loans we are comfortable we are comfortable, we have been reviewing all portfolio, asset quality is good

RBI Guv: On gold loans, we are very comfortable

Guv on US treasury holdings: Our forex reserves had come down… as a result all holdings come down, there will be fluctuations

Growth is looking up and inflation is the same… Barring precious metals, core inflation is benign

Guv: We are confident of meeting our external sector responsibilities. We have twice the reserves of our short-term debt

Guv: Safe harbour rules for IT, it’s a big move for tax certainty. All the GCCs will vastly gain from this measure

Guv: This year we have witnessed record deals in the Banking and NBFC space, record $15 bn FDI has come in…

Guv: CD ratio are cyclical. When credit is more than deposit, it is expected the CD ratio will go up

For us it is not the CD ratio which is important… it is liquidity

Our macro fundamentals including external sector are very strong, robust, healthy

Near-term, medium-term outlook is healthy, favourable

Trade agreements will help on trade and investments

Guv: We reviewed the liquidity management framework… not many changes were announced. 

“This is a complex subject. Treps, call money and repo markets have a high linkage and we decided not to change it”

Guv: We will continue to provide sufficient liquidity… With respect to govt borrowing program, the gross numbers are not the correct way to look at it

If you look at the net numbers – this year Rs 11.3 lakh crore, next year Rs 11.7 lakh crore…The growth in net Govt borrowing programme is much less…Money will be raised also through the T-bills.. will help in managing yield curve better

Dy Guv Rabi Shankar: Buybacks have not been factored in at this time … they will be factored in during the course of the year…with buybacks gross borrowing programme will come down…

Quote: 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. This follows the cumulative 125 basis points rate reduction during 2025, which has already supported borrowing sentiment and improved affordability. 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.”

Quote: Amit Prakash Singh, Co-founder & CBO, Urban Money

“From a mortgage and lending perspective, the RBI’s decision to keep the repo rate unchanged at 5.25 percent provides much needed policy stability for the home loan market. With the benefits of earlier rate cuts yet to be fully transmitted, efficient and timely pass through by lenders will be critical to sustain demand. Stable rates improve borrower confidence, encourage planned credit spending and support disciplined balance sheet decisions, especially for first time homebuyers and upgraders who remain sensitive to even marginal changes in borrowing costs.”

Quote: Kunal Shah, Co-founder, SURE

“The RBI’s decision to keep the repo rate unchanged at 5.25% as the MPC committee believes that outlook on growth and inflation are positive. Successful completion of trade deal with US augurs well for growth and outlook on inflation is closer to 4% target. 

RBI has infused approximately Rs 13.70 lakh crores of liquidity in the banking system in current financial year (including dividend of Rs 2.70 lakh crores), apart from the this interest rates are reduced by 1.25%. Status quo will allow the economy to absorb the monetary changes introduced over the course of the last financial year. Neutral chance also ensure, RBI can deliver another rate cut if outlook on inflation turns favourable and global commodity prices normalise. 

From a lending perspective, having maintained a neutral stance provides more certainty to both banks and borrowers on the earlier repo rate cuts. For borrowers, this stability means interest rates are less likely to see sudden movement. Existing borrowers will see more stable monthly outgo, while new buyers are better positioned to plan their home purchases with confidence, aided by predictable EMIs and stable rates improved affordability driven by prior easing.”

Quote: Vikrant Chaturvedi, Associate Director – Research, Brickwork Ratings

“The RBI MPC’s unanimous decision to keep the repo rate unchanged at 5.25 percent and maintain a neutral stance signals confidence in India’s macroeconomic resilience, with growth holding firm even as inflation remains decisively benign. With FY2026 CPI inflation projected at a low 2.1 percent and underlying pressures well contained, the policy pause suggests that the current rate setting is appropriately calibrated to support demand without jeopardising price stability. Importantly, the MPC’s upward revision to its GDP growth projections for early FY2027 to 6.9 percent in Q1 and 7.0 percent in Q2, underscores the strength of domestic growth drivers, particularly services, investment and consumption. Notably, the absence of any explicit liquidity guidance in the policy statement points to a preference for letting financial conditions evolve organically rather than actively easing them at this stage. The MPC’s emphasis on reassessing the policy path after the release of the new GDP and CPI series later this month reinforces its data-dependent approach. From a credit ratings perspective, stable policy rates and strong growth are supportive of debt-servicing capacity and ratings stability, although a less accommodative liquidity environment could temper the benefits for highly leveraged and liquidity-sensitive borrowers amid persistent external volatility.”

Quote: Vikas Garg, Head – Fixed Income, Invesco Mutual Fund

“As expected, it was a non-event policy, with the RBI maintaining the status quo on both policy rates and stance. The RBI revised Q1/Q2 FY27 GDP estimates upward, supported by robust commentary driven by strong domestic factors and recent tariff related trade agreements. Q1/Q2 FY27 inflation projections were also revised slightly higher, though nothing concerning. Full year FY27 projections will be released in the April policy, incorporating the revised CPI and GDP series. While the Governor reiterated a pre emptive approach to liquidity management, the absence of specific announcements on additional liquidity measures disappointed the market. The current growth inflation dynamics suggest that the present rate cut cycle may have come to an end, unless growth surprises negatively. For now, we expect an extended pause in policy rates. However, the RBI may continue to infuse durable liquidity through OMOs to aid better rate cut transmission, particularly in the short tenor segment.” 

Quote: Naveen Kulkarni, Chief Investment Officer, Axis Securities PMS

The RBI’s decision to maintain the repo rate and retain a neutral stance was in line with expectations. Despite global volatility, GDP growth for FY26 has been revised marginally upwards to 7.4%, from 7.3% earlier. The inflation outlook remains comfortable, although the FY26 forecast has seen a slight uptick to 2.1% from 2.0%. While the possibility of a further 25 bps rate cut in upcoming policy meetings cannot be entirely ruled out, it appears unlikely, particularly in light of the India–US trade deal announcement, healthy GDP growth, contained CPI inflation, and improving trends in credit growth.

For banks, Q3 marked a clear inflection point in credit growth, with momentum expected to continue. Secured retail segments continue to demonstrate healthy growth, while unsecured segments are showing gradual signs of revival. Corporate credit growth has remained reasonably robust, especially for larger banks. NIM trends were divergent in Q3: large banks reported stable margins, while mid- and small-sized banks outperformed, posting healthy improvements. Heading into Q4, we expect NIMs to remain steady to marginally improve, as the impact of the December ’25 rate cut is yet to fully play out. Continued deposit repricing, albeit at a slower pace, should provide support to margins. Credit costs have turned the corner and are expected to improve further as stress in unsecured portfolios moderates. Slippages are likely to trend lower, and the asset quality outlook remains favourable. Overall, we expect banks to deliver healthy earnings growth over the medium term. We remain positive on select large banks such as Kotak Mahindra Bank and SBI, and prefer Federal Bank, City Union Bank, and Ujjivan SFB among SMID banks.

Quote: Sameer Sawant, Research Analyst, Mirae Asset ShareKhan

“We believe this is neutral for banks and NBFCs as far as the overall policy is concerned, though the RBI explicitly did not announce any OMO like measures to boost liquidity, as they want to ensure full transmission of measures taken earlier, but an assurance to pro-actively work towards ensuring sufficient liquidity is comforting.”

Quote: Amit Jain, Chairman and Managing Director, Arkade Developers Ltd

“In an environment where inflation remains comfortably within target and growth momentum shows resilience, the monetary policy committee’s choice to hold the repo rate steady at 5.25% reflects a deliberate and balanced approach to monetary policy. By maintaining a neutral stance the central bank has signalled its intent to judiciously weigh the impact of substantial easing over the past year and the unfolding macroeconomic context including global uncertainties and domestic demand dynamics. This pause offers valuable clarity to markets and borrowers while preserving the flexibility to act should inflationary pressures or external risks shift in the months ahead.”

Quote: Dr. Poonam Tandon, Chief Investment Officer, IndiaFirst Life Insurance

“The MPC has kept the repo rate unchanged at 5.25% and the committee has unanimously decided to keep the stance neutral. The real GDP growth projections for Q1 and Q2 for FY 27, are revised upwards slightly to 6.9% and 7% respectively. The revised outlook for CPI inflation in Q1 and Q2 of next year, at 4% and 4.2% respectively, revised upwards. 

While RBI sees growth as favourable, RBI also sees external headwinds having intensified. As far as liquidity in the banking system is concerned, at present it is surplus by Rs 2 lakh crores and the RBI will be taking ‘pre-emptive’ measures on liquidity management for productive requirements and monetary transmission. The policy was as per expectations and focussed on stability in rates thereby indicating a long pause in rate action.”

RBI Guv: To ensure monetary policy transmission happens throughout the system… Transmission has been good till Dec

RBI Guv: Liquidity is something that is our duty to provide – ample and sufficient to meet the needs of the economy

Quote: V Rama Chandra Reddy, Head – Treasury, Karur Vysya Bank

RBI Stays the Course with a Strategic Pause. RBI’s policy reflects a clear focus on macro-financial stability, with the continuation of the pause being a strategic decision and fully consistent with the MPC’s earlier actions and guidance.

Upward revisions to both CPI inflation and GDP growth have further narrowed the space for any near-term rate cuts, leading to a fading of earlier market expectations of one additional cut. The MPC’s assessment indicates that the current repo rate is broadly appropriate for prevailing macroeconomic conditions.

On the liquidity front, the RBI has reiterated its commitment to maintaining adequate system liquidity, providing comfort to money markets. While no OMO purchases were announced, the RBI has retained flexibility to deploy liquidity management tools as required.

Overall, the policy outcome was well aligned with market expectations, with bond yields hardening marginally by about 4–5 basis points in the immediate reaction. Going ahead, an extended policy pause is likely to result in range-bound bond markets, with demand–supply dynamics and domestic liquidity conditions acting as the key drivers. The benchmark 10-year yield is expected to trade in a broad range of 6.60%–6.80% in the near term, supported by the RBI’s calibrated and predictable policy approach.

Quote: Sachin Bajaj, Executive Vice President & Chief Investment Officer, Axis Max Life Insurance

“The MPC meeting comes against a backdrop of heightened geopolitical uncertainty, inflation below the lower end of the MPC tolerance band, and volatile currency markets. The policy announced today was a status quo decision; however, we expect space for further monetary support if growth slows down. We anticipate a final 25 basis point cut in the repo rate to 5% during the early part of the next financial year to address growth concerns emanating from the uncertain global environment.”

Quote: Vikram Chhabra, Senior Economist, 360 ONE Asset

The RBI’s decision to keep policy rates unchanged was broadly in line with our expectations. Since the previous meeting, the growth outlook has remained largely stable, while upside risks to inflation have emerged amid rising commodity prices. In this context, it is reasonable for the RBI to adopt a wait-and-watch approach until greater clarity emerges on the macroeconomic outlook. Additionally, both the inflation and GDP series are scheduled for revision, and it would be prudent to base policy decisions on the updated datasets. Broadly, we still see room for at most one additional rate cut, provided the inflation outlook remains benign. Going forward, policy focus is likely to shift toward more effective liquidity management.

Quote: Abhishek Bisen, Head-Fixed Income, Kotak Mahindra AMC

RBI will continue to remain proactive and maintain ample liquidity. We believe post this policy RBI to be in long pause. 10 yr G-sec has moved up slightly by 4 bps and is trading around 6.70% levels.

Quote: Sameer Sawant, Research Analyst, Mirae Asset ShareKhan

It is neutral for banks and NBFCs as far as the overall policy is concerned, though the RBI explicitly did not announce any OMO like measures to boost liquidity, as they want to ensure full transmission of measures taken earlier, but an assurance to pro-actively work towards ensuring sufficient liquidity is comforting.

Quote: Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India 

The RBI’s decision to hold rates steady, reflects a cautious and stability focused stance in a volatile global environment. As the economic growth outlook remains stable and maintain momentum, we can expect this overall growth to have a positive impact on the real estate sector. The pause underscores the central bank’s priority on managing currency pressures and external risks.

For the real estate sector, the repo rate continues to remain at its lowest level in the post-pandemic period. While a further reduction in rates would have provided an added boost to homebuyer sentiment, particularly in the affordable housing segment, we expect banks to pass on a greater share of the existing rate benefits to consumers in the coming months. A stable interest rate environment offers much-needed predictability, supporting informed decision-making for both homebuyers and developers. In addition to the rate actions, the central bank has also eased the rules for bank lending to REITs which is a positive step considering it will ease their credit access and facilitate access to lower cost funds.

Quote: Ashok Kapur, Chairman, Krishna Group and Krisumi Corporation

The RBI’s decision to keep the repo rate unchanged at 5.25% reinforces policy stability and provides a supportive backdrop for the residential real estate market. While a rate cut would have lowered borrowing costs, a steady interest rate environment enables homebuyers to take long-term purchase decisions with greater confidence and predictability. This is particularly relevant for the premium housing segment, where buyers place stronger emphasis on product quality, location, and long-term value creation rather than short-term rate movements.

For developers, rate continuity allows for more disciplined planning of project launches, construction schedules, and capital deployment. With premium homes forming an increasing share of residential sales across key metropolitan markets, stable monetary policy is expected to help sustain demand momentum and reinforce positive sentiment over the coming quarters.

Sujan Hajra, Chief Economist & Executive Director, Anand Rathi Group.

As widely anticipated, the MPC delivered a status quo outcome, with no change in the policy repo rate and no change in the liquidity stance, which remains neutral. There were no major policy surprises in the decision.

On projections, GDP growth for H1 FY27 was revised slightly upwards, reflecting resilient domestic demand and continued momentum in services. CPI inflation for this year was revised up by ~10 bps, largely driven by higher precious metal prices, while underlying core inflation remains benign.

The only surprise from our end was the absence of any fresh liquidity-related announcements. That said, the RBI has already injected durable liquidity during December and January, which has meaningfully eased system liquidity. 

With much of the policy transmission passed through in lending and deposit rates, the policy reinforces a wait-and-watch stance, with future action remaining data-dependent.

At the current juncture, with repo at 5.25 and inflation projected closer to 4%, the real rates of 1.25% indicates RBI’s bias towards growth as inflation remains under the target band. We think the central bank will continue to hold rates unless we note a material worsening in growth.

Quote: Garima Kapoor, Deputy Head of Research and Economist at Elara Capital 

Focusing on effective transmission of rate cuts already taken and being encouraged by healthy growth trajectory in the economy RBI’s MPC decided to keep repo rate unchanged while awaiting new GDP and CPI series. 

With inflation expected to rise hereon amid normalization of food prices and adverse base effect, the scope for further rate cuts has shrunk. A shock to growth-inflation balance would only propel another rate cut. For now, we expect a prolonged pause from the RBI.

Quote: Ankur Jalan, CEO, Golden Growth Fund (GGF), a category II Real Estate focused Alternative Investment Fund (AIF)

At a time when real estate demand has moderated and access to traditional financing remains selective, AIFs continue to play a critical role in providing structured, long-term capital to the sector. Real estate–focused AIFs are well positioned to bridge the funding gap through flexible capital structures, superior risk pricing, and asset-backed investments.

While the MPC has maintained a status quo on the policy rate, a continued supportive monetary stance focused on ensuring adequate liquidity and smoother transmission will further enhance the appeal of real estate AIFs.

For domestic investors, real estate AIFs offer portfolio diversification, predictable income streams, and the potential for capital appreciation. This positions AIFs as a compelling alternative investment avenue, supporting timely project execution while contributing to overall sectoral resilience and financial stability.

RBI ups Q1 and Q2FY27 GDP and CPI inflation projections

The Reserve Bank of India upped the real GDP growth projections for the first (Q1) and second (Q2) quarters of FY27 by 20 basis points (bps) amid favourable growth outlook.

RBI ups Q1 and Q2FY27 GDP and CPI inflation projections

RBI raises GDP and CPI inflation projections for Q1 and Q2 FY27, citing a favorable growth outlook and rising precious metal prices.

RBI allows banks to lend directly to REITs

RBI allows banks to lend directly to REITs

RBI allows banks to lend directly to REITs, facilitating capital raising and expediting projects in the real estate sector.

RBI MPC Meeting 2026: RBI holds repo rate at 5.25% 

RBI keeps repo rate unchanged at 5.25%, maintains neutral stance amid global policy divergence

RBI holds repo rate at 5.25%, maintaining a neutral stance amid global economic uncertainties and evolving macroeconomic conditions.

Watch: RBI pauses rate cuts, retains interest rate at 5.25 per cent

Indian economy continues to register growth despite challenging environment

Indian economy continues to register high growth… Low inflation provides leeway to support growth, says RBI Governor

Standalone PDs to be given more flexibility to undertake forex transactions, says RBI Governor

RBI Guv: Propose to remove the limit of Rs 2.5 lakh crore investments under the voluntary retention route. To issue framework for derivatives in corporate bond indices, total return swaps

NBFCs having no access to public funds with assets less than ₹1,000 crore will be exempt from RBI registration, says RBI Guv

RBI to issue draft guidelines for customer protection

• Proposed to launch unified portal for better management of lead bank scheme
• To allow banks to lend to REITs
• Draft guidelines to be released for customer protection for mis-selling, recovery of loans, and limiting liability of customers in in unauthorised transactions

• Proposed to remove tenor and moratorium on housing loans given by tier III UCBs

RBI MPC Live: RBI Guv on liquidity management

• RBI will remain proactive in liquidity management
• Liquidity management will be pre-emptive
• System level financial stability parameters of scheduled commercial banks remain robust
• Credit from all sources have picked up and grew 13 pc
• Large industries recorded higher credit growth

G-Sec yields have continued to harden, mirroring global trends, says RBI Governor

RBI MPC Live Updates: Liquidity infusion and lending rates

Liquidity infusion measures in Jan and Feb so far amounts to 25 bps of rate cut. 

Lending rates have declined 105 bps till Dec, in response to 125 bps rate cut

RBI MPC Live Updates: Key numbers from RBI MPC announcements

Net FPI outflows were at $5.8 bn

India’s forex reserves provide more than 11 months of import cover

System liquidity at surplus ₹70,000 crore on a daily average basis

India’s external sector remains resilient

India merchandise experts grew 1.9 pc y-o-y in Q3 due to diversification of markets, says RBI Governor

Diversified trading partners will integrate India into global supply chain. India continues to be attractive FDI destination for greenfield projects. India continues to remain an attractive investment destination for greenfield projects

Headline CPI inflation remains low

Food supply prospects remain bright. Core inflation is expected to remain soft and rangebound. CPI inflation for FY 26 projected at 2.1%, slightly up from 2.0% projected earlier. Q4FY26 inflation forecast at 3.2%

GDP projections for Q1 and Q2

Real GDP growth projection for Q1 and Q2 of FY27 revised slightly upwards to 6.9 and 7 per cent, says RBI Governor

RBI MPC Live: India-EU FTA and the prospective India-US trade deal will support exports for the medium term, says the RBI Guv

RBI MPC Live Updates: Key insights from RBI Governor Sanjay Malhotra

• Momentum in private consumption to sustain next year
• Recovery in urban consumption should strengthen
• High-capacity utilisation, accelerating bank credit, emphasis on infra should give an impetus to investment activity
• Measures in the budget should be conducive to growth

RBI Governor says there is a drag in the net external demand, and the rural demand remains steady

RBI MPC Live Updates: New series for inflation and GDP

RBI Guv: In a few days, we will have a new series of GDP and inflation

RBI MPC Live: Inflation forecast

Inflation forecast for Q1, Q2 of FY27 is revised slightly upward to 4%, 4.2% respectively

Growth outlook remains favourable, says RBI Guv

Successful completion of trade deal augurs well for near term outlook. Economic activity is resilient. Growth outlook remains favourable

External headwinds intensified since last policy, says the RBI Guv

Against the global backdrop that has becomes cautious, bond markets are bearish. Headline inflation during Nov, Dec was below the tolerance band

RBI Guv: RBI keeps the repo rate unchanged at 5.25%, neutral stance to continue

Rupee rises 11 paise to 90.23 against US dollar in early trade

The rupee rose 11 paise to 90.23 against the US dollar in early trade on Friday on positive investor sentiments as traders keenly awaited the RBI’s MPC announcement.

However, FII outflows, rise in crude oil prices, and a marginally stronger greenback capped sharper gains in the local unit, according to forex traders.

At the interbank foreign exchange, the rupee opened at 90.28 against the greenback before rising to 90.23, up 11 paise from its previous close.

Rupee pushes weekly rally into RBI policy, aided by possible one-off flows

The Indian rupee added to its weekly ‍rally on Friday ahead of the central bank’s policy outcome, aided by possible one-off dollar sales ‌that helped offset a risk-off backdrop.

The rupee strengthened to 90.18 per dollar from 90.3550 in the previous session, taking its weekly advance, sparked by the U.S.-India trade deal, to 2%. (Reuters)

Stock markets open in red ahead of RBI MPC outcome, global weakness weighs on sentiments

Sensex and Nifty50 open on a cautious note and slipped into the red as investors remained on the sidelines ahead of the outcome of MPC meet, amid weak global cues.

At the opening bell, the Nifty 50 index declined by 37 points or 0.14 per cent to 25,605.80, while the BSE Sensex opened lower by 64.61 points or 0.08 per cent at 83,249.32.

Nuvama Research says RBI likely to hold repo rate, maintain neutral stance

“In the forthcoming MPC review, we reckon the RBI shall maintain status quo after cumulative easing of 125bp, bringing the repo rate to 5.25 per cent. Transmission to bank lending rates is in progress and bond yields have been quite sticky,” the Nuvama Research’s report noted.

RBI MPC Live News Updates: GDP & Inflation projection

In December, RBI revised its projections for GDP growth rate to 7.3 per cent, 50 basis points higher than its earlier projections. The Economic Survey 2025-26, presented on January 30, 2026 during the Budget session, projects India’s real GDP growth at 7.4 per cent for FY26 and 6.8 to 7.2 per cent for FY27.

The Consumer Price Index (CPI) rose to 1.33 per cent in December 2025 over the same month in 2024. The inflation forecast for FY26 was reduced to 2.0 per cent from 2.6 percent.

RBI MPC Live: RBI to keep repo rate unchanged amid currency volatility and bond yield pressures: SBI report

The Monetary Policy Committee (MPC) of the Reserve Bank of India is likely to maintain a status quo on the repo rate in its policy announcement scheduled for Friday, amid continued global economic uncertainty, pressure on government bond yields and volatility in the domestic currency, according to a report by State Bank of India.

Read more ​here​

RBI MPC Live: Key announcements from last MPC in December

Repo Rate Cut: The policy repo rate was lowered from 5.50% to 5.25%.

Policy Stance: The committee maintained its “neutral” stance.

Growth Projections: The RBI sharply raised its GDP growth projection for FY26 to 7.3% (up from 6.8%).

Inflation Outlook: The CPI inflation projection for 2025-26 was lowered significantly to 2.0% from the earlier 2.6%.

Liquidity Injections: The RBI announced open market operations (OMOs) worth ₹1 trillion to buy bonds and $5 billion in forex swaps to improve liquidity transmission.

Supportive Rates: Consequently, the Standing Deposit Facility (SDF) rate was adjusted to 5.00% and the Marginal Standing Facility (MSF) rate to 5.50%.

What happened in the last six MPCs in 2025?

Feb 2025 – 25 bps rate cut, neutral stance

Apr 2025 – 25 bps rate cut, neutral stance

Jun 2025 – 50 bps rate cut, neutral stance

Aug 2025 – no rate cut, neutral stance

Oct 2025 – no rate cut, neutral stance

Dec 2025 – 25 bps rate cut, neutral stance

Here’s the dates for last six MPC meetings in calendar year 2025, typically spanning three days each with the policy announcement on the final day

• February 5–7, 2025
• April 7–9, 2025
• June 4–6, 2025
• August 4–6, 2025 (rescheduled from August 5–7)
• September 29 – October 1, 2025
• December 3–5, 2025

RBI MPC Live: Highlights of Inflation data from December

• Headline CPI Inflation: 1.33% (up from 0.71% in November)
• Food Inflation (CFPI): -2.71%, remaining in negative territory for the seventh consecutive month, though narrower than November’s -3.91%
• Core Inflation: Jumped to a 28-month high of 4.8%, largely driven by rising precious metal (gold and silver) prices.
• Rural vs. Urban: Rural inflation was 0.76%, continuing to stay lower than urban inflation at 2.03%

Here’s the CPI inflation rate (year-on-year) for the most recent six months:

• July 2025: 1.61%
• August 2025: 2.07%
• September 2025: 1.44%
• October 2025: 0.25%
• November 2025: 0.71%
• December 2025: 1.33%

Data for January 2026 has not been released as of today (typically published around the 12th of the following month). Forecasts suggest it may be around 2.0%, well below 4% target of the RBI.

What is the main objective e of RBI MPC?

Its primary mandate is to maintain price stability by targeting a Consumer Price Index (CPI) inflation rate of 4% (+/- 2%) while supporting economic growth. Decisions are made via a majority vote, with the Governor holding a casting vote in the event of a tie.

What is Monetary Policy Committee?

The Monetary Policy Committee (MPC) is a six-member statutory body chaired by the RBI Governor that determines India’s benchmark interest rates. The committee meets at least four times annually to decide on the repo rate, which influences borrowing costs across the national economy. It usually meets 6 times a year (bimonthly).

RBI MPC Members: Here’s the composition of the current monetary policy committee

Internal RBI Members

• Sanjay Malhotra: Governor, Reserve Bank of India (Chairperson, ex officio).
• Poonam Gupta: Deputy Governor, Reserve Bank of India (In charge of monetary policy).
• Indranil Bhattacharyya: Executive Director, Reserve Bank of India.

External Members

• Ram Singh: Director, Delhi School of Economics, University of Delhi.
• Saugata Bhattacharya: Economist and former Chief Economist at Axis Bank.
• Nagesh Kumar: Director & CEO, Institute for Studies in Industrial Development, New Delhi.

Where to watch MPC Live?

The announcements and the following press conference will be live streamed on the RBI’s YouTube channel

RBI MPC Live Updates: When RBI MPC announcements are expected?

The policy outcome will be revealed at 10:00 AM today (February 6), followed by a press conference from Governor Sanjay Malhotra at 12:00 PM

RBI MPC Live: Hello and welcome to RBC MPC Live on businessline

Thank you for joining us as we bring you real-time insights, analysis, and expert perspectives on today’s policy announcement