By Sourav Shekhar
New Delhi, Feb 6 (.) Industry bodies and sectoral experts on Friday welcomed the Reserve Bank of India’s decision to keep the policy repo rate unchanged at 5.25 per cent and retain a neutral stance, saying the move provides much-needed stability amid soft inflation, strong domestic growth and an uncertain global environment.
Announcing the Monetary Policy Committee (MPC) decision, RBI Governor Sanjay Malhotra said, “Headline CPI inflation remained low in November and December even as it firmed up by one percentage point in these two months. This increase was largely driven by the lower rate of deflation in the food group. Excluding gold, core inflation remained stable at 2.6 per cent in December.”
Reacting to the decision, the PHD Chamber of Commerce and Industry (PHDCCI) said the RBI’s stance reflects a balanced assessment of macroeconomic conditions. “The status quo on the repo rate is appropriate given the backdrop of moderate headline inflation and high GDP growth projected at 7.4 per cent for 2025–26,” said PHDCCI President Rajeev Juneja.
He added that moderation in food prices, stable core inflation and adequate buffer stocks are positive for price stability, while the central bank’s caution on geopolitical risks and commodity price volatility highlights the need for continued vigilance.
PHDCCI further noted that a stable interest rate environment, combined with healthy balance sheets of corporates and financial institutions, high capacity utilisation and robust credit growth, is likely to support private investment.
“The government’s continued thrust on capital expenditure will help crowd in private investment and strengthen medium-term growth prospects,” Juneja said.
Echoing the same, Pankaj Chadha, Executive Director of EEPC said, ” The Reserve Bank of India’s decision to keep the policy rate unchanged at 5.25 pc was largely anticipated given the 100 basis points reduction earlier in current fiscal and strong macroeconomic fundamentals.”
Chadha also pointed towards the declination of headline inflation and healthy growth outlook for the future.
Real estate sector players said the RBI’s decision brings predictability for both homebuyers and developers.
Ashish Narain Agarwal, Founder and Managing Director of PropertyPistol, said, “The pause at 5.25 per cent keeps EMIs stable for homebuyers, especially on repo-linked loans, while supportive loan-to-value norms continue to aid first-time and mid-income buyers.”
He added that NRI interest in Indian real estate remains strong, driven by policy stability, attractive yields and long-term appreciation potential.
Vishal Raheja, Founder and MD of InvestoXpert Advisors, said the rate pause reinforces macro stability after cumulative easing in 2025.
“Borrowing costs have normalised, keeping asset pricing rational and returns predictable for long-term investors. While the pause may not spur fresh affordability, sustained end-user demand and infrastructure-led growth continue to support the sector,” he said.
Developers also welcomed the predictability in financing costs. “With home loan rates largely plateaued, developers can plan launches, land acquisitions and construction with greater confidence. Housing demand remains resilient and driven by fundamentals rather than rate-led speculation,” said Sunil Sisodiya, Founder and CEO of Neworld Developers.
Banking and financial services experts said the impact of earlier rate cuts has already transmitted into retail lending.
Ajay Kumar Srivastava, MD and CEO of Indian Overseas Bank (IOB) welcomed the Central Bank’s continued emphasis on stregthening the financial ecosystem through customer protection, improved liquidity management and enhanced credit flow to MSMEs.
Sharing the fintech perspective Adhil Shetty, CEO of BankBazaar, said, “Most of the easing has already flowed into home loans, keeping rates competitive despite the pause. On the savings side, fixed deposit rates are likely to stabilise, with fewer sharp hikes ahead.”
Overall, experts said the RBI’s decision underscores a calibrated and confidence-enhancing policy approach—supporting growth and investment while remaining alert to inflationary pressures and external sector risks.
The Reserve Bank of India’s Monetary Policy Committee (MPC) on Friday unanimously decided to keep the key policy repo rate unchanged at 5.25 per cent, citing resilient domestic growth, a benign inflation outlook and rising global uncertainties.
The decision was taken at the MPC’s 59th meeting held from February 4-6, under the chairmanship of RBI Governor Sanjay Malhotra.
. SAS KK