RBI Monetary Policy - Repo Rate remains unchanged amidst the disruptions caused by Geopolitical Tension.

The Reserve Bank of India’s Monetary Policy Committee kept the repo rate unchanged in its maiden bi-monthly meet of FY26-27. The decision is taken in the meeting headed by Sanjay Malhotra, Governor, RBI.

Considering the disruptions caused by the escalation in tension over the geopolitical scenario, the repo rate stands at 5.25%.

How will stable repo rates impact homebuyers in Indian Cities?

Anshuman Magazine, Chairman & CEO, India, South-East Asia, Middle East & Africa, CBRE said, “The RBI MPC’s decision to maintain the status quo on the repo rate is a testament to the inherent resilience and momentum of the Indian economy. By prioritizing macroeconomic stability and maintaining a vigilant stance on aligning inflation with its target, the central bank has successfully navigated the complexities of the global landscape. Thus calibrated approach signals robust underlying fundamentals and a confident domestic outlook.”

Earlier in February, the Reserve Bank of India, in its first policy meeting post the Union Budget 2026, kept the repo rate unchanged at 5.25%. Sanjay Malhotra, RBI Governor, stated that the decision was made considering strong fiscal growth and the removal of tariffs following the trade agreement with the United States of America.

The first RBI MPC in January, 2026 seeks relief for middle-class taxpayers puzzled over whether banks will cut home loan interest rates. The decision to continue the current Repo rate by the RBI is taken in a two-day Monetary Policy Meet, a bi-monthly procedure. It aims to monitor and bring necessary alterations to ensure a robust financial strategy for the nation.

What will be the impact of an unchanged Repo rate?

For the fiscal year, the Reserve Bank of India estimates India’s GDP growth at 6.9%.  The estimated growth rate is supported by the resilient domestic demand and the optimistic move in the service sectors. Also, the improved manufacturing capacity utilisation is a strong reason for keeping the repo rate unchanged.

Considering risk inflation, headline CPI is projected at 4.6% at FY26-27. The risk increases due to rising energy prices, global trade disruptions, and financial market volatility. Thus, weather-related disruptions, including El Niño, raise the necessity of a wait-and-watch policy.

“This policy reflects a careful assessment of the evolving domestic and external macroeconomic background,” said Ranjeet Mehta. He further said, the soaring energy prices needs monitoring despite consumption and investment remains on positive side.

The PHD Chamber of Commerce and Industry expressed the move as a balancing act while coping with supply disruption. The industry body said the present geopolitical scenario is a tough time as it is a challenge to growth and inflation.

How will an unchanged Repo Rate affect Commercial Real Estate in India?

CRE (Commercial real estate) in India is likely to witness stability in business. The steadiness is likely to occur from stable borrowing costs for developers, investors, and end-users. The rise in office leasing activity in top Indian cities is likely to continue, with the bare minimum possibility of a sudden price rise of commercial properties.

Future RBI Rate Change and Predictions

The economic fraternity prefers the wait-and-watch approach as the geopolitical scenario will be evaluated before making a decision. The next RBI Monetary Policy Meet will take place in June 2026.