Noida, June 5 (APAC Media): The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) on Friday left the repo rate unchanged at 5.25 %, RBI Governor Sanjay Malhotra said while announcing the decision after the policy meeting.
Highlighting the global economic environment, Malhotra said uncertainty continues to persist amid the ongoing conflict in West Asia. “Over the past few months, the global economy has been shaped by heightened uncertainty, disruptions to key trade routes and supply chains, increased market volatility and cautious business sentiment,” he said.
At its June 3–5 meeting, the committee maintained a neutral stance, keeping the Standing Deposit Facility (SDF) rate unchanged at 5 %. The Marginal Standing Facility (MSF) rate and the bank rate were also left steady at 5.5 %.
Monetary Policy Committee (MPC) has decided to keep the policy repo rate unchanged at 5.25%: RBI Governor Sanjay Malhotra#RBI #MonetaryPolicy #RepoRate #MPC #SanjayMalhotra pic.twitter.com/yQKx4EAN9D
— All India Radio News (@airnewsalerts) June 5, 2026
The RBI governor further said that India is better placed to handle the ongoing global challenges compared with earlier episodes of external shocks. He expressed confidence that the economy would be able to absorb such pressures with limited impact.
The RBI Governor projected real GDP growth of 6.6 % for FY27.
“Elevated energy prices and disruptions in global supply chains are weighing on economic activity and growth prospects. There are incipient signs of moderation in some sectors, as suggested by high-frequency indicators. The MPC is of the view that there are considerable risks to the baseline assumptions of both growth and inflation. The food outlook remains uncertain due to forecasts of a subnormal southwest monsoon and the impact of El Niño,” the RBI governor added.
Points that sum up the Monetary Policy announcement on June 05, 2026:
•Policy Repo Rate remains unchanged at 5.25%
•Marginal Standing Facility (MSF) & Bank Rate remains at 5.50%
•Standing Deposit Facility (SDF) remains at 5.00%
•Real GDP growth for 2026-27 is projected at…— ReserveBankOfIndia (@RBI) June 5, 2026
“Major advanced-economy central banks are likely to pivot towards monetary policy tightening. While equity markets remain buoyant, driven by AI-fuelled optimism, global bond markets remain bearish amid renewed inflation fears and continuing debt sustainability concerns,” RBI Governor Sanjay Malhotra said.
What experts say on RBI’s rate pause?
“The RBI’s decision to maintain the repo rate at 5.25% reflects a balanced approach and supports stability in the real estate sector by sustaining homebuyer confidence and affordability,” said Ashish Sharma, AVP Operations, Brahma Group.
“Bond yields edged lower supported by measures to boost foreign capital inflows for government borrowing and tax benefits for FPIs. While inflation was revised higher to 5.1%, it remains within the RBI’s comfort band, and GDP growth for FY27 was slightly moderated, reflecting a data-dependent and vigilant policy approach,” said Naval Kagalwala, COO & Head of Products, Shriram Wealth Ltd.
“The RBI has lowered its FY27 GDP growth forecast to 6.6% and raised its inflation projection to 5.1%, reflecting persistent risks from food prices, energy costs, and global volatility. Despite current CPI remaining within range, inflation pressures could build toward the upper tolerance band in the coming quarters” said Sumit Singhania, Head of Research, Bajaj Broking.
“The MPC’s decision to keep the repo rate unchanged at 5.25% reflects a measured approach that supports stability for homebuyers, developers, and investors, reinforcing confidence in real estate and sustaining India’s housing demand cycle,” said Pratik Tibrewala, Head Corporate Finance, M3M India.
“The RBI’s decision to maintain the repo rate at 5.25% reflects a balanced approach that supports economic growth while ensuring stability for homebuyers, developers, and investors in the real estate sector,” said Sudhanshu Dutt, CEO, Elevate Homes.
“RBI has taken a wait-and-watch approach by keeping the repo rate unchanged amid global uncertainties and inflation risks, while revising growth and inflation forecasts and signalling a cautious outlook ahead,” said Jyoti Prakash Gadia, MD, Resurgent India Limited.
Home loan outlook: No EMI relief, but stability for borrowers
The RBI’s latest policy decision offers no immediate reduction in borrowing costs for prospective homebuyers. However, experts say expectations of future rate cuts could continue to support housing demand in the months ahead.
At the same time, buyers are advised to base their decisions on their personal financial position rather than attempting to time interest rate movements. With rates holding steady, borrowers can plan their finances with greater certainty and avoid the risk of unexpected changes in EMIs.
“India’s economic position is quite robust and very sound and healthy,” said Sanjay Malhotra, RBI governor.
“India is not alone in facing this global shock; all nations are impacted. However, India is in a much better position—both compared to other countries and relative to similar shocks in the past. Our economic growth is above 6.5%, which very few countries, particularly major economies, can claim. Inflation, however, is likely to face upward pressure due to rising global oil prices.” The governor added.
Overall, the RBI’s decision to keep the repo rate unchanged at 5.25% translates into no immediate relief on home loan EMIs but also no additional burden for borrowers.
Existing borrowers are likely to see their EMIs remain stable, while prospective homebuyers gain clearer visibility on borrowing costs as they plan their property purchases.
–ENDS–
Disclaimer: Views expressed are those of experts and do not reflect APAC Media. This is for informational purposes only, not financial advice. We are not responsible for investment decisions. Please consult a qualified financial advisor before investing.
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