RBI MPC August 2025 Highlights: Panel Maintains Neutral Stance, Governor Cautions Against Tariff Shocks
RBI MPC August 2025 Highlights: The Monetary Policy Committee, chaired by Governor Sanjay Malhotra, will announce the decision on key rates on August 6 at 10 AM and share fiscal policy updates ahead.
Background
RBI MPC August 2025 Highlights: The Reserve Bank of India (RBI) is set to reveal the outcome of its bi-monthly Monetary Policy Committee (MPC) meeting on Wednesday, August 6. The...More
Dhiraj Relli, MD & CEO, HDFC Securities, said, "The RBI's MPC has, as anticipated, held the repo rate steady at 5.5 per cent following a cumulative 100 basis points cut across three prior meetings. The central bank maintains its neutral stance—judiciously balancing growth support with inflation vigilance as earlier cuts transmit through the economy. India's macroeconomic fundamentals remain resilient. GDP growth for FY2025–26 is projected at 6.5 per cent, anchored by robust consumption, nascent investment revival, and digital economy momentum, though global headwinds, including US tariffs and currency volatility, warrant caution."
"The MPC's measured approach appears prudent. Further rate cuts remain possible but likely postponed until October, contingent on sustained low inflation and evolving external pressures. For investors, close attention should now be paid to monsoon-driven food inflation, the timing and effect of phased CRR reductions, evolving global trade policy, and festive season demand—each of which could influence the trajectory of future rate actions and risk appetite across asset classes," Relli said.
Ramani Sastri, Chairman and MD, Sterling Developers, noted, "The residential real estate sector has adapted to the prevailing interest rate environment and continues to show robust performance. The growth trajectory of the realty sector remains positive, and more and more people are investing in the mid, premium, and luxury segment. The housing sector has already been benefiting from the cumulative 100 bps cut in the repo rate, as reflected in the rising consumer demand driven by lower home loan interest rates."
"However, the decision to maintain status quo will keep the ongoing residential real estate sales momentum on course, offering homebuyers assurance of steady loan terms. With sustained demand, we believe that the sector’s growth momentum will definitely accelerate further with continued policy support, firmly establishing the real estate sector as a key driver of the nation's economic development." Sastri opined.
Rajesh Sharma - Managing Director, Capri Global Capital Limited, said, "RBI has decided to keep the policy rates unchanged based on the possibility that headline inflation may increase in the coming quarters. Transmission of the previously announced rate cuts is progressing well, and the liquidity condition in the banking and NBFC system is improving and will further increase once the previously announced CRR cut comes into effect."
"Overall, economic growth prospects are positive, and the health of banks and NBFCs is in a comfortable condition, which will ensure sufficient credit availability in the market. An increase in credit availability will rejuvenate consumption, spending, and investment, especially in credit-starved sectors like MSMEs and affordable housing," he opined.
Harsh Jagwani, Managing Director at Notandas Realty, said, "We welcome the RBI's move to keep the repo rates unchanged. The previous rate cut has led to a positive impact in the real estate market, and this announcement will help in keeping the momentum going for the sector. As the US plans to impose steep tariffs on Indian imports, the RBI's cautious stance will help in maintaining stability across the sector.
"As per a recent CREDAI-CRE Matrix report, India's housing sales touched INR 3.6 lakh crores in H1, 2025. Lending rates have already softened, and unchanged repo rates will offer much relief to aspiring homebuyers and investors. Affordable borrowing will continue to drive growth across the residential segments, which in turn will amplify the buoyant sentiment in the market," Jagwani noted.
Atul Monga - CEO and Co-Founder, BASIC Home Loan, said, "Following the aggressive 50 bps rate cut in June, which brought the repo rate down to 5.50 per cent, the RBI’s decision to keep the repo rate unchanged and maintain a neutral policy stance is in line with our expectations. CPI inflation has been consistently riding on the lower side, with June marking a 6th year low at 2.1 per cent. The apex bank is forecasting a full-year inflation rate of 3.1 per cent for FY26."
"For lenders, a stable and balanced liquidity position allows clearer planning. The previous CRR reduction improved liquidity, and the unchanged policy stance helps reserve their interest margins and support credit expansion," he added.
Indian equity benchmarks closed lower for the third consecutive session on Wednesday, weighed down by weak global cues. The BSE Sensex fell 166.26 points, or 0.21 per cent, to end at 80,543.99, while the NSE Nifty declined 80.10 points, or 0.32 per cent, to settle at 24,569.45. Investor sentiment remained subdued after the Reserve Bank of India decided to keep the repo rate unchanged at 5.5 per cent, prompting a cautious stance across the market.
Vikas Garg, Head – Fixed Income, Invesco Mutual Fund, commented, "Growth projections remain healthy at 6.5 per cent for FY26, despite global tariff-related uncertainties. Forward-looking growth-inflation dynamics set a high bar for any future rate cuts. A small window for a possible final rate cut may open in the October or December policy meetings, but only if economic growth surprises meaningfully on the downside. Comforting commentary on adequate banking liquidity provides some relief. Currently elevated market yields, combined with low running inflation, offer a favourable risk-reward profile for investors.”
Vinayak Magotra, Founding Team, Centricity WealthTech remarked that inflation projections for next year could have an impact on bond yields in the long term. "With liquidity improving and inflation within the target, the central bank has preserved space for future actions amid global uncertainty. Inflation projections for the current fiscal year have been revised lower, for the next two quarters, largely due to base effects and softer food prices. However, the projection for Q1 FY27 remains above 4 per cent, suggesting that inflation could firm up over the medium term owing to the surplus liquidity. As a result, long-term bond yields may see upward pressure in the coming months," he explained.
Abhishek Raj, Founder and CEO of Jenika Ventures, argued for a shift to accommodative stance on the domestic economy. He explained, "While the status quo supports macroeconomic resilience, a more accommodative stance could have given added support to real estate, especially at a time when consumer sentiment is gradually improving. For homebuyers and developers alike, affordable credit access continues to be a prime catalyst of housing market momentum."
Seema Prem, co-founder & CEO, FIA Global, noted, "The Governor’s emphasis on building on bank account openings under the PM Jan Dhan Yojana to develop resilience afforded by insurance and pensions augurs well. Inclusive growth and financial inclusion today are as much about access to financial services as it is about affordability and resilience. A stable and responsive monetary stance, backed by digital rails and grassroots delivery mechanisms like Business Correspondents, gives us the foundation to build financial well-being and drive consumption at the bottom of the pyramid. It gets reflected in deeper financial activity — not just onboarding into the formal financial system but through saving, insuring, borrowing, and repaying, for every household in every village."
Apurva Sheth, Head of Market Perspectives & Research, SAMCO Securities, commented, "RBI decided to keep the rates unchanged mainly on the back of uncertainties related to global trade shocks and a 77-month low inflation reading. Inflation is at its lowest levels in the recent past and has only one way to go, which is up. The projection for inflation in Q1-FY26-27 is around 4.9 per cent, which is more than double where we are right now. With tariff uncertainties and geopolitical risks looming, it is a prudent step by the RBI to hold on to the rates and cut only if there is a major shock to growth going forward."
Umesh Sharma, CIO Debt, The Wealth Company Mutual fund, explained that the MPC maintained its growth forecast, backed by rural demand, strong government capex, favourable monsoon, healthy reservoir levels, and a robust momentum in services and construction sectors.
"While the policy outcome aligned with consensus, a section of the market was hoping for a dovish shift or even a 25-bps rate cut, especially amid falling headline inflation and rising expectations of rate cuts by the U.S. Federal Reserve later this year. The MPC, however, chose to stay on hold. As a result, bond yields rose by 4–7 basis points across the curve. Looking ahead, the MPC appears poised for a prolonged pause, though a 25-bps cut toward the year-end remains possible. Investors can stay engaged in moderate-duration fixed income strategies and selectively explore long-end opportunities based on risk appetite," he added.
Rajiv Sabharwal, MD and CEO, Tata Capital Ltd, noted, "With the policy stance remaining neutral, and both the Standing Deposit Facility (SDF) and Marginal Standing Facility (MSF) rates held steady at 5.25 per cent and 5.75 per cent respectively, the central bank has opted for stability while continuing to prioritise durable growth and anchoring inflation expectations. A rate cut in upcoming meetings remains a possibility, which could further strengthen confidence in India’s resilient macroeconomic fundamentals. The move would also signal policy continuity amid external uncertainties, such as the impact of global tariff developments. The economic growth outlook remains robust, supported by steady performance in the services sector.”
Mahendra Nagaraj, Vice President, M5 Mahendra Group, said, "The Reserve Bank of India’s decision to maintain the repo rate at 5.50 per cent, following a series of strategic cuts earlier this year, is a prudent and reassuring step that continues to drive momentum in India’s housing sector. With home loan rates remaining attractively low, the industry is witnessing a strong resurgence in homebuyer sentiment and consistent demand across both affordable and premium segments.
"This policy continuity, supported by improved liquidity, is further strengthening the real estate ecosystem - enabling developers to plan with greater financial clarity and deliver projects with enhanced efficiency. Importantly, the sustained low-rate environment offers a timely boost of confidence for first-time homebuyers, encouraging more decisive steps toward homeownership. While a marginal rate cut could have further stimulated demand in price-sensitive markets, the RBI’s balanced approach reinforces long-term sectoral stability. At M5 Mahendra Group, we believe this policy direction lays a robust foundation for sustained growth, deeper market consolidation, and rising investor confidence in Indian real estate," he added.
Vishal Kumar Manoria, Senior Manager, Investment Research and Analytics, Aranca, "As anticipated, the RBI held the repo rate steady and maintained its neutral stance. While the inflation outlook has improved (FY25-26 CPI revised down to 3.1 per cent from 3.7 per cent), the RBI remains cautious amid ongoing tariff announcements, trade negotiations, and external sector pressures. FY26 real GDP growth was retained at 6.5 per cent. Notably, policy transmission continues to strengthen, with 71 bps passed through to lending rates and 87 bps reduction in the weighted average domestic term deposit rates. Overall, the RBI’s stance reflects a calibrated approach, balancing inflation management with the need to preserve macro-financial stability."
Binod Kumar, MD & CEO, Indian Bank, "As RBI had front loaded rate cut, it was expected to maintain status quo. It is welcome move. However, it leaves room to reconsider in coming months as CPI is benign and a push for growth may be required. At Indian Bank, we have already passed on benefits of previous rate cut and expect further normalisation in MCLR as cost of fund continue southward journey.”
Amit Somani, Deputy Head-Fixed Income, Tata Asset Management, noted that RBI delivered a status quo policy by keeping policy rates on hold. The stance is kept at neutral. This is despite significant downward revision of FY26 CPI inflation to 3.1 per cent from 3.7 per cent. GDP forecast for FY26 has been retained at 6.5 per cent. "RBI seems to be allowing time to work its front-loaded policy cut into the banking system, while keeping a watchful eye on longer-run inflation. Impact of emerging tariff situation on broad economy, markets, and currency continues to play on RBI’s mind. We feel the hawkish tone of policy may create volatility in markets in the near term; however, a firm eye on inflation should provide comfort to markets in the longer term," he said.
Ajay Kumar Srivastava, MD & CEO, Indian Overseas Bank, said that the RBI’s decision to maintain the repo rate at 5.5 per cent and continuation of maintaining a neutral stance is a well-calibrated approach in its aim to control inflation and growth support.
"With core inflation remaining steady at 4 per cent mark, projections of CPI inflation averaging 3.1 per cent for FY26 and GDP growth holding steady at 6.5 per cent reaffirm the resilience of the Indian economy. We also welcome RBI’s move on liquidity management and its aim to remain nimble, which is important for ensuring credit availability while maintaining economic stability," he added.
Vineet Agrawal, Co-founder of Jiraaf, noted, "The RBI held the repo rate steady at 5.50 per cent on August 6, maintaining a neutral stance with a hawkish tilt, disappointing market hopes for a dovish signal. While the central bank revised headline inflation for FY26 down to 3.1 per cent (from 3.7 per cent), it also projected Q1FY27 inflation at 4.9 per cent. With FY26 GDP growth unchanged at 6.5 per cent, the policy pause could extend for 12–15 months, making any rate hike unlikely before 2027."
"Direct impact of these evolving uncertainties on India's inflation is likely to be very limited. Nearly half of our inflation basket consists of food which does not get impacted directly by global developments. A significant part consists of non-tradable, which, again, does not get impacted by global developments," said Poonam Gupta, Deputy Governor of the Reserve Bank of India during the post-monetary policy committee announcement press conference.
Rohit Garg, CEO and Co-Founder of Olyv, said that the RBI’s decision to maintain the repo rate at 5.5 per cent with a neutral stance signals a balanced and thoughtful approach. "With 100 basis points already cut since February, it's prudent to allow time for the impact to filter through the credit ecosystem. This pause creates room to assess evolving borrower sentiment and credit demand, especially as inflation remains contained. However, ongoing concerns around food prices and global uncertainties make it essential to stay nimble. As transmission gains traction, broader participation from credit-seeking users is expected in the months ahead," he added.
Shiwang Suraj, Founder & Director of Gurugram-based property consulting firm InfraMantra, noted, "Considering the housing market scenario and increasing home loan off take, a rate cut would have helped propel the housing market. The NCR real estate market is on a strong footing and the demand continues to be strong with the region’s growing lifestyle aspiration, massive infrastructure development and demand for bigger homes leading to a surge in luxury housing."
Vimal Nadar, National Director and Head of Research, Colliers India, argued, "Stability in monetary policy augurs well for homebuyers and real estate developers, particularly in the affordable and mid-income segments. The lowering of interest rates in the recent past is expected to be fully passed on to the end users in upcoming quarters, who are likely to benefit from reduced financing costs. With the festive season approaching, developers can further capitalise on this momentum with timely project completions, new launches, and festive offers & discounts. Overall, the cautious yet growth-supportive monetary policy is likely to strengthen demand across real estate segments in the second half of 2025.”
Piyush Bothra, Co-Founder and CFO, Square Yards, said that the MPC's decision reflected a 'watchful waiting' approach. He added, "Domestically, India's growth remains resilient, and recent inflation figures have been benign, staying below the RBI's target range. However, the global economic environment presents uncertainties, including volatile commodity prices and the monetary policy stances of major central banks, which could have spill-over effects on our economy. For the residential sector, a further cut would have been a welcome festive bonus for homebuyers. This stability ensures that borrowing costs remain manageable and avoids any sudden shocks to the market. The onus now squarely falls on the banks to enhance the transmission of previous rate cuts, ensuring that the benefits of lower interest rates are fully passed on to homebuyers.”
Sandeep Aggarwal, Chairperson and Managing Director, AIL Developer, said, "We welcome the RBI’s continued focus on maintaining financial stability and curbing inflation through a calibrated monetary policy. The decision to maintain the repo rate at its current level reflects a cautious yet pragmatic stance, balancing growth with price stability. From a property viewpoint, though stable interest rates do bring some relief to developers and homebuyers alike, a cut in rates would have further gained strength for housing demand, particularly in mid-income and affordable segments. The industry is heavily dependent on stable consumer sentiment that is directly related to borrowing costs. We are optimistic about the long-term real estate industry fundamentals and encourage the central bank to take growth-supportive measures in future policies. Facilitating liquidity, enhancing credit flow to the industry, and encouraging home ownership will be instrumental in propelling the next phase of urban development and infrastructure expansion."
“With policy rates on pause and inflation poised to ease, the real cost of owning a home is slipping lower, making quality, affordable housing the next frontier. We’ll see a shift from speculative land bets to developments designed around people’s needs and long-term value," commented Ashwinder R. Singh, Vice-Chairman & CEO, BCD Group.
Robin Pahuja, Co-Founder and MD, ElitePro Infra, said that the RBI's decision will help maintain macroeconomic stability. "From the real estate and infrastructure point of view, a stable interest rate regime brings much-needed stability to strategic planning and long-term investments. Yet, we are of the opinion that a rate cut would have further spurred demand, particularly in high-growth urban regions where infrastructure-driven growth is in overdrive," he noted.
Umesh Kumar Mehta, CIO, SAMCO Mutual Fund, welcomed the RBI's decision to keep the key rates unchanged. He noted, “Keeping the Repo rate unchanged is the most prudent policy action taken by the MPC. Given that the Indian Rupee is weakening and the narrowing of the global interest rate differentials, the scope for rate reduction was slim. In the interest of stability of the currency, given the volatile trade conditions, status quo on interest rate is the best that the monetary authority can do.”
The RBI MPC noted, "CPI inflation, however, is likely to edge up above 4 per cent by Q4:2025-26 and beyond, as unfavourable base effects, and demand side factors from policy actions come into play. Barring any major negative shock to input prices, core inflation is likely to remain moderately above 4 per cent during the year. Weather-related shocks pose risks to inflation outlook. Considering all these factors, CPI inflation for 2025-26 is now projected at 3.1 per cent with Q2 at 2.1 per cent; Q3 at 3.1 per cent; and Q4 at 4.4 per cent. CPI inflation for Q1:2026-27 is projected at 4.9 per cent. The risks are evenly balanced."
The stock markets remained nearly flat and slipped marginally as investors reacted to the RBI's decision to keep the repo rate unchanged and continue with the neutral stance on economic policy. The BSE Sensex slipped 51 points and traded at 80,660, while the Nifty50 inched down 8 points to stand below 24,650, as of 10:21 AM.
The Standing Deposit Facility (SDF) rate has been maintained at 5.25 per cent, while both the Marginal Standing Facility (MSF) rate and the Bank Rate continue to hold steady at 5.75 per cent each.
The governor said that CPI inflation estimate stood at 3.1 per cent, revising it lower from 3.7 per cent estimate shared in the earlier MPC meeting in June.
RBI Governor Sanjay Malhotra stated that core inflation has stayed stable at 4 per cent. Announcing the outcome of the Monetary Policy Committee (MPC) meeting, he said that economic growth remains supported by the above-normal southwest monsoon and other favourable conditions.
Sharing the growth outlook, the governor said, "With sustained growth in construction and trade, services to remain buoyant. External demand remains uncertain amidst tariff uncertainties."
He maintained the earlier GDP forecast for FY26 at 6.5 per cent. Sharing detailed estimates for the year, he said GDP estimate for Q1FY26 stood at 6.5%, for Q2FY26 at 6.7%, for Q3FY26 at 6.6%, and for Q4FY26 at 6.3%. For first quarter of 2026-27, he said GDP estimate stood at 6.6%. Risks are evenly balanced, he added.
The Governor noted that inflation is likely to go up from Q4 of the current fiscal year. He added that growth remains robust, uncertainties of tariffs are still evolving, and impact of rate cut is still unfolding. The MPC unanimously voted to keep the rate unchanged and continued to maintain a neutral stance for the economy going ahead.
The Reserve Bank of India (RBI)’s Monetary Policy Committee decided to maintain the status quo on key interest rates. Governor Sanjay Malhotra revealed the final decision of the panel in a press conference today and said the key repo rate remains unchanged at 5.5 per cent.
Governor Sanjay Malhotra is scheduled to reveal the MPC's decision on key rates and fiscal policy soon. Watch it LIVE HERE.
Atul Monga, CEO and Co-Founder, BASIC Home Loan, noted, “I expect the RBI to maintain the status quo on key policy rates in the upcoming MPC meeting. Following the aggressive 50 bps rate cut in June, which brought the repo rate down to 5.50 per cent, along with a 100 bps reduction in the CRR, a pause now would bring stability and allow the full transmission of recent easing measures. For homebuyers and lenders, predictability is critical, and holding the rates steady at this juncture will ensure confidence and provide clarity within the housing finance ecosystem. That said, if inflation remains muted and growth moderates to sustainable levels, I foresee the possibility of another 25 bps rate cut by the year-end. For now, a prudent pause looks like the right course of action for lenders, borrowers, and the economy at large.”
Stock markets opened on a heavily volatile note on Wednesday as investors remained cautious ahead of the RBI MPC's rate decision reveal. The BSE Sensex climbed 35 points to reach near 80,750, while the NSE Nifty50 slipped about 6 points to trade below 24,650, as of 9:35 AM.
Manas Gond, CEO and Co-founder, Prosperr.io, said, "Given the current macroeconomic climate, I expect the RBI to maintain the status quo on the repo rate in the upcoming MPC meeting. The escalating global trade tensions, coupled with the rupee being one of the poorer performing currencies over the last five months, places considerable pressure on the central bank. The prudent path would be to adopt a 'hold and watch' approach, prioritizing currency stability and gauging the impact of these headwinds before making any decisive move."
Prof. Vishal Sarin, Economist at LPU, explained, "Monetary Policy Committee (MPC) meeting are shaped by both domestic and global headwinds. With inflation appearing range-bound and economic activity showing signs of uneven recovery, market participants and analysts widely anticipate a 25 basis point cut in the repo rate. This move is expected to provide a boost to consumer demand and ease borrowing costs, particularly ahead of the upcoming festive season. Moreover, with the recent imposition of US tariffs on Indian exports, there is growing expectation that the RBI will take a supportive stance to protect growth and export competitiveness. Analysts also expect a possible revision in the Consumer Price Index (CPI) inflation forecast, factoring in recent supply-side developments and global price trends."
Bharat Soni, Co-Founder, Ram Fincorp, commented, "I believe the upcoming RBI Monetary Policy Committee (MPC) decision is pivotal for the lending ecosystem, especially in the retail segment we cater to. Over the last few months, the central bank has taken significant steps to ease borrowing conditions, bringing the repo rate down to 5.5 per cent and improving overall liquidity in the market. With inflation relatively under control and growth dynamics still stabilising, we expect the RBI to maintain a wait-and-watch approach in this meeting, allowing the impact of recent rate cuts to flow fully into the economy."
Amit Modi, Director, County Group, said, " As much as we may wish for it, we expect the RBI to maintain the status quo on the repo rate. The Trump Tariff has come as a spoiler. Despite all this, the Indian economy is on a sound footing, the growth outlook looks promising, and the real estate sector, which entered a consolidation phase this year, is on firm ground. With the banking system liquidity rising to a net surplus of Rs. 3.74 trillion, a three-year high, these are actually good times, and we can hope for a reduction just before the onset of the festive season".
Saurabh Saharan, Group Managing Director, HCBS Developments, says, "Ahead of the upcoming MPC meeting, a further cut in the repo rate would be a welcome move for the entire housing ecosystem in NCR. The reduction earlier this year already helped improve buyer sentiment, especially in the mid-income and emerging premium categories. Lower EMIs not only enhance affordability but also bring back momentum in segments where decisions were being deferred. A slight rate cut, or even maintaining it, could align perfectly with the festive buying cycle, giving both end-users and developers the confidence to act decisively. This will also provide relief to builders by reducing borrowing costs and enabling them to launch new projects and clear inventory faster."
Rajjath Goel, Managing Director, MRG Group, says, "In Gurugram’s luxury housing market, sentiment plays a big role. The 50 bps cut in repo rate earlier in June was a confidence booster, particularly for premium launches. Another rate cut in August- or even a stability- would add further momentum, especially ahead of the festive season. This will give reassurance that macroeconomic cues are aligned with long-term investment decisions."
Jash Panchamia, ED, Jaypee Infratech Limited, pointed out, "The RBI had adopted a neutral stance in its previous policy review, and it remains to be seen whether the central bank will go for a rate cut or maintain the status quo. With inflation currently at a six-year low, a 25-basis-point cut in the repo rate would be encouraging for the overall economy. The real estate sector, having already benefited from the previous three consecutive rate cuts, would see a further boost in demand and buyer confidence if another cut is announced. Such a move would reinforce the current growth momentum in the housing market. It would support end-users and first-time homebuyers by lowering borrowing costs and making home ownership more accessible across segments."
Anticipating a boost ahead of Diwali, Edul Patel, Co-founder and CEO of Mudrex, said, "Since February, the RBI has cut interest rates by 100 basis points. We expect another 25 bps cut in August as well, given that retail inflation in India has been cooling for the past few months. In June, the Consumer Price Index (CPI) came in at 2.1 per cent, the lowest reading since January 2019. We could see July’s inflation come even lower. Historically, rate cuts around the festive season have led to strong credit growth and increased spending. With growing concerns around US tariffs, the RBI is also likely to cut rates further to boost domestic consumption."
Keshav Mangla, GM Business Development of Forteasia Realty, explained, "The August 2025 policy review for the Indian real estate industry, on one hand, is against subdued inflation but varied urban-rural demand and global trade unease. Both builders and proponents of affordable housing expect interest rates to either hold steady or be cut, if only just a little, to boost the economy. It has already benefitted due to the earlier rate reductions, resulting in more sales and higher share prices for top realty companies. Policy continuity is good, developers said they are wary of the global tariff outlook as well as price volatility in commodities and construction costs that can affect housing demand in the months ahead. This should boost the India’s capacity to unlock more inclusive and resilient urbanisation, while at the same time putting a premium on macroeconomic resilience that will force the country to support credit growth."
Aman Gupta, Director, RPS Group, noted, "While the RBI Monetary Policy Committee sits down for its August 2025 meeting, the Indian Real Estate Sector is at a crossroads. After three rate cuts in 2025 so far, consensus appears broadly divided between a further small repo rate cut or keeping rates on hold in a dovish pause. A relatively low inflation environment, just over 2 per cent, means the borrowing outlook is benign, but home loans are still tough to get with unchanged lending standards in August. If there is a 25-basis-point cut, fresh momentum may kick in, especially in the affordable and mid-income segment, which will only reinforce positive sentiment among homebuyers. But the market also respects the RBI's tightrope act: growth aspirations on one hand, and a view to guarding against global volatility and possible inflationary pressures down the line on the other. This well-calibrated policy, in turn, should help settle down and invigorate the housing market in India over the next few quarters."
Speaking on his expectations for the ongoing RBI MPC Meet August 2025, Rohit Beri, CEO and CIO, ArthAlpha said, "With the impending risk to growth arising from US tariff imposition, there is even a chance that the RBI might move pre-emptively and opt for a 25 bps rate cut
in this policy. Although there is a 50 per cent possibility of a cut and 50 per cent possibility of no change, the main consideration is that inflation is still more or less in hand, tipping the risk balance in favour of growth."
Beri also highlighted that, "Even if the RBI decides to leave rates unchanged this time, we expect the central bank to remain accommodative and be ready to act forcefully if growth headwinds gain some further strength. Inflation is firmly under control, and the risks are more and more on the growth side. The agenda now should be to sustain the economy through timely policy action, keeping in view evolving global challenges that could temper India's growth momentum."