The Reserve Bank of India (RBI) has decided to maintain the repo rate at 5.25% in its February 2026 Monetary Policy Committee (MPC) meeting, continuing the pause after a cumulative 125 basis points cut in the ongoing easing cycle. Announced by RBI Governor Sanjay Malhotra, this status quo decision—reached unanimously—comes with a neutral policy stance and reflects confidence in India’s resilient growth trajectory amid benign inflation and stronger macroeconomic fundamentals, including upward revisions in GDP forecasts.
For homebuyers, the biggest immediate impact is stability in home loan Equated Monthly Instalments (EMIs). Since most floating-rate home loans are linked to external benchmarks like the repo rate, today’s hold means no upward revision in borrowing costs. Existing borrowers avoid any EMI shock, while new buyers gain predictability to plan purchases without fear of sudden rate hikes.
Industry experts and real estate leaders have welcomed the move for providing much-needed certainty in an environment of rising economic optimism post-Union Budget 2026-27, improved trade agreements, and infrastructure momentum.
Prashant Sharma, President, NAREDCO Maharashtra, noted: “The RBI’s decision to maintain the repo rate at 5.25% provides much-needed stability to the real estate sector… policy continuity will help sustain housing demand and enable developers to plan investments with greater confidence.”
Kaushal Agarwal, Chairman, The Guardians Real Estate Advisory, added: “Stable interest rates will play a crucial role in sustaining homebuyer sentiment and investment activity… reinforcing real estate’s appeal as a stable, long-term asset class.”
Kamlesh Thakur, Co-Founder & Managing Director, Srishti Group, highlighted: “This policy stability brings much-needed clarity on financing costs… we anticipate sustained momentum across residential segments, particularly in infrastructure-driven growth corridors.”
Shilpin Tater, Managing Director, Superb Realty, said: “The RBI’s neutral stance… will support occupier and investor sentiment, particularly for long-gestation commercial projects that rely on long-term cost visibility.”
Shraddha Kedia-Agarwal, Director, Transcon Developers, emphasized: “Stable borrowing costs… create a supportive environment for housing demand, especially in metropolitan markets… This policy continuity will help sustain residential demand and support long-term housing affordability.”
Dhruman Shah, Promoter, Ariha Group, observed: “The continued pause on interest rates provides much-needed predictability… positioning the sector for stable, long-term growth.”
Nihar Jayesh Thakkar, Founder, The Mandate House Pvt. Ltd., stated: “Unchanged interest rates combined with a stronger growth outlook enhance investor confidence across asset classes.”
Samantak Das, Chief Economist and Head – Research and REIS, India, JLL, provided deeper insight: “The unchanged rate… preserves stability in borrowing costs, supporting consumer spending, housing demand, and business investment… The residential market… experienced a sales slowdown in 2025… the combination of accelerated GDP growth, moderating housing price appreciation, and the prospect of additional rate cuts is expected to revive housing sales volumes in 2026.”
Anuj Puri, Chairman – ANAROCK Group, pointed out a balanced view: “RBI’s decision… means that home loan EMIs will not change… This will keep buyers engaged but does nothing to lift demand further… A rate cut would have potentially brought at least some fence-sitters back to the market.” He noted subdued affordable housing trends and called for targeted fiscal measures.
Manju Yagnik, Vice Chairperson of Nahar Group and Senior Vice President of NAREDCO-Maharashtra, said: “An unchanged rate has ensured that EMIs on floating-rate loans remain steady, offering predictability… This clarity on borrowing costs has supported affordability and enabled homebuyers… to plan long-term purchases with greater confidence.”
Dharmendra Raichura, VP and Head of Finance, Ashar Group, concluded: “An unchanged rate environment brings stability to funding costs… From a homebuyer’s perspective, predictable lending rates preserve EMI visibility and reinforce purchase confidence.”
While the hold shields EMIs from rises and supports overall sector momentum amid a robust 7.4% GDP growth outlook for FY26, experts note that affordability challenges persist in segments like affordable housing. Many anticipate potential future cuts if inflation remains controlled, which could further ease EMIs.
This policy continuity underscores the RBI’s calibrated approach—balancing growth support with inflation vigilance—offering homebuyers a window of EMI stability to make informed decisions in a strengthening economy.
Also Read: RBI Monetary Policy – Can the Housing Market Absorb Another Hike?
