The RBI’s decision to maintain the repo rate at 5.50% reflects a balanced approach to supporting economic growth while keeping inflation in check. The previous rate cuts have already improved liquidity. Such policy continuity strengthens investor confidence, encourages long-term investments, and ensures sustainable growth in residential and commercial real estate, even amid global uncertainties,” said Parag Munot, MD, Kalpataru Ltd.

Quote from Mr Manish Mohnot, Kalpataru Projects International Ltd on credit policy

“The RBI’s decision to maintain the repo rate at 5.50% reflects a prudent and balanced approach to control inflation and support economic growth, amidst the continuing global uncertainties and volatile market conditions. With 100 basis points already reduced earlier this year, the central bank is rightly allowing the effects of rate cuts to percolate through the economy. This cautious stance not only safeguards India’s growth momentum but also helps anchor the rupee’s stability. For infrastructure and capital-intensive sectors, such policy continuity builds confidence, enabling  Engineering, Procurement, and Construction firms to plan long-term investments with greater clarity and resilience,” said Manish Mohnot, MD, Kalpataru Projects International Ltd

BACKGROUND

The Reserve Bank of India has kept repo rate unchanged at 5.50%, marking the second consecutive pause after a cumulative 100 basis point cut earlier this year. The decision comes amidst global uncertainties, including new U.S. tariffs on Indian imports, H1-B Visa issues, GST reforms and geopolitical uncertainties.

RBI revised CPI inflation forecast lower to 2.8%, down from 3.1% in August, citing strong consumer demand and GST rate cuts. The central bank revised GDP growth estimate to 6.8% from the earlier 6.5% for FY26, reflecting confidence in India’s economic resilience despite global headwinds.

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