New Delhi: The Reserve Bank of India’s Monetary Policy Committee has unanimously voted to keep the policy rate unchanged. RBI Governor Sanjay Malhotra, in the Monetary Policy Statement, said, “The Monetary Policy Committee met for its third bi-monthly meeting of the current financial year on August 3, 4 and 5 to deliberate and decide on the policy repo rate. After a detailed assessment of evolving macroeconomic and financial developments, as well as the outlook, the MPC unanimously decided to keep the policy repo rate unchanged at 5.25 per cent.”
“Consequently, the Standing Deposit Facility (SDF) rate will remain unchanged at 5 per cent, while the Marginal Standing Facility (MSF) rate and the bank rate will remain at 5.5 per cent. The MPC also decided to continue with the neutral stance,” he added.
Malhotra said “The impact of El Nino on the temporal and spatial distribution of rainfall remains a major risk. Global oil prices have also remained highly volatile, with sharp two-way movements triggered by geopolitical developments, blurring the near-term inflation outlook.
While generalised inflation pressures remain modest so far, the risk of second-round effects from higher food, fuel and other input costs translating into broader-based inflation persists.”
“Today’s Monetary Policy Committee review ended with the repo rate held at 5.25%, a unanimous call, and the neutral stance carried forward. SDF sits at 5%, MSF and bank rate at 5.5%. FY27 growth got a lift too. The forecast now stands at 6.7%, up from 6.6%, as Governor Sanjay Malhotra pointed to steady consumption, manufacturing strength and healthy credit expansion. Inflation moved the other way. FY27 CPI is now estimated at 5%, 10 bps lower, moving unevenly through the year: 5.3% in Q1, 4.7% in Q2, 5.9% in Q3, easing to 5.5% in Q4. Core inflation is projected at 4.3%, with food and fuel driving most of the headline pressure. The RBI also issued draft guidelines to resume UCB licensing and proposed standardising interest rate rules across regulated entities. Malhotra flagged the West Asia conflict as the key external risk to watch. For borrowers, EMIs stay unchanged. FD holders may want to lock in current rates,” Sarika Grover , Co founder of LoansJagat said.
“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.
“The RBI’s decision to hold rates reinforces macroeconomic stability, which is critical for long-term investment decisions. The residential real estate sector enters this phase from a position of strength, backed by healthy demand, disciplined supply, and improving buyer sentiment. We believe stable interest rates will continue to support sustained momentum across key housing markets,” Dr. Mohit Ramsinghani – President – VTP Realty.
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