RBI Holds Repo Rate at 5.25 Percent Amid Inflation and Growth Outlook

RBI kept the repo rate at 5.25 percent for the third consecutive meeting, a decision described as neither dovish nor hawkish and matching market expectations, while noting that inflation remains within the 4‑plus‑2 target range.

Governor Sanjay Malhotra said the outlook is hazy and the bank needs clearer data before any shift, flagging crude‑oil price volatility as a key inflation risk and warning that warming trends in the Pacific could pressure Indian agriculture.

Real‑estate developers expect the unchanged rate to keep home‑loan EMIs stable, which they argue will sustain buyer confidence, support ongoing housing projects and avoid a slowdown in the sector that contributes significantly to GDP.

HSBC analysts raised their FY27 India growth forecast to 6.3 percent, citing stronger‑than‑expected momentum, and said RBI’s steady policy provides a supportive backdrop for that expansion, while the central bank continues to monitor inflation and agricultural risks.