RBI Holds Repo Rate At 5.25% Amid Global Risks, Industry Sees Stability, Confidence Boost & Steady Credit Flow

Mumbai: The Reserve Bank of India (RBI) has kept the repo rate unchanged at 5.25 percent, signalling a cautious and balanced approach at the start of the new financial year. Industry experts said this decision reflects stability amid global uncertainties such as geopolitical tensions and rising oil prices.

Industry sees confidence boost

Leaders across sectors welcomed the move, saying it strengthens confidence for borrowers, businesses, and financial institutions. Rajiv Sabharwal of Tata Capital noted that the decision provides a 'timely cushion' to the economy and helps stakeholders navigate uncertain global conditions.

Similarly, Essar Capital highlighted that policy consistency gives companies better visibility for long-term planning and investment decisions.

Relief for MSMEs and borrowers

Experts said the unchanged rate will protect borrowers from sudden increases in loan costs. Vikesh Agrawal of NetZero Finance pointed out that stable rates will keep EMIs and working capital costs under control, especially for MSMEs and clean-tech companies.

Banks also welcomed the decision. CSB Bank said the policy reflects a data-driven approach and provides reassurance on liquidity during uncertain times.

Real estate and investment outlook

The real estate sector sees the move as positive for demand. Reliance Model Economic Township said stable rates help homebuyers and developers plan better, supporting steady growth in housing demand.

Industry players also noted that long-term demand is now driven more by income growth, infrastructure, and organised development rather than short-term rate changes.

Concerns over global risks remain

While the policy is stable, experts warned about risks from global developments. Rising oil prices and supply disruptions due to West Asia tensions could impact inflation and growth in the coming months.

However, industry leaders believe India is better prepared to handle these challenges due to strong fundamentals and steady consumption.

Focus on growth and liquidity

The IMC Chamber said the policy strikes the right balance between growth and inflation. It also appreciated RBI’s focus on liquidity and MSME support, which will help maintain economic stability.

Overall, the industry views the RBI’s decision as a reassuring step that supports growth while keeping risks under control.