Decision to hold rates anchored within uncertainties: SBI Chief Setty 

The MPC’s decision to hold rates was mostly on expected lines anchored within the uncertainties posed by the lagged response of policy, trade and bottoming of inflation in some advanced economies, said C.S. Setty, Chairman, State Bank of India (SBI) and Chairman of the Indian Banks’ Association (IBA).

He said while inflation would remain under check at 3.1% for FY26, growth impulse was expected to be intact despite the concerns of external demand and supply shocks.

K. Balasubramanian, CEO, Citi India & Banking Head Indian Subcontinent said, “The RBI’s decision to not effect another rate cut after three successive reductions is prudent, reflecting a balanced approach amid global uncertainties. This would preserve flexibility to navigate emerging global challenges and provide time for consolidating the gains from earlier easing.”

Akhil Puri, Partner, Financial Advisory, Forvis Mazars in India said, “The RBI held the repo rate steady at 5.5% with a neutral stance, signaling a cautious equilibrium amid rising global uncertainty. The U.S.’s recent 25% tariff on Indian exports added fresh external pressure, but the RBI maintained confidence in domestic resilience.”

“CPI inflation for FY26 was revised down to 3.7% (from 4%) after June retail inflation hit a six-year low at 2.1%, suggesting a shift in underlying price dynamics. FY26 GDP growth remains robust at 6.5%, reflecting sustained domestic momentum,” he said.

According to Rajiv Agrawal, Promoter and Co-Founder, Saarathi Group, “The decision of RBI to maintain the repo rate at 5.5% is a bid to spur growth. The status quo will provide crucial support to the ongoing wave of redevelopment projects across Mumbai.”

“With no rise in cost of borrowing, real estate developers involved in cluster and society redevelopment can borrow cheaper capital enhancing the financial feasibility of complicated long-gestation projects for timely completion of projects,” he said.

“No change in the repo rate will also boost homebuyer sentiment, which is likely to spur growth in the real estate sector. We can expect more buyers to opt for homes in upcoming redevelopment projects,” he added.