Experts Expect RBI to hold Rates Amid Global Uncertainties
New Delhi, Aug 2 (TNT) :Industry experts expect the Reserve Bank of India (RBI) to maintain the status quo on key policy rates at the upcoming Monetary Policy Committee (MPC) meeting, citing heightened geopolitical tensions, inflationary risks and global economic uncertainty.
They believe a stable monetary policy would provide predictability to businesses and investors while supporting India’s economic growth.
In a statement here on Sunday, Umesh Gowda H.A., Chairman and Founder of Sanjeevini Group, said the MPC meeting comes at a time when the global economy is facing geopolitical tensions, supply chain disruptions and renewed inflationary pressures driven by rising energy prices.
He said the RBI is likely to prioritise macroeconomic stability over monetary easing, with a status quo on the repo rate appearing to be the most prudent course.
Stable interest rates, he said, would provide certainty to developers and homebuyers and help sustain the momentum in the housing sector.
In a separate statement, Mukesh Choudhary, Managing Director of Accuspace, said the RBI faces the challenge of balancing economic growth with inflation management amid an increasingly volatile global environment.
He expected the MPC to adopt a wait-and-watch approach, adding that policy consistency would reassure both domestic and foreign investors.
Predictable interest rates, he noted, are particularly important for commercial real estate and institutional investments as they support long-term capital deployment and strengthen financing conditions.
Ankur Jalan, Chief Executive Officer of Golden Growth Fund (GGF), a Category-II real estate-focused Alternative Investment Fund (AIF), said the RBI is likely to adopt a cautious and calibrated approach in view of geopolitical tensions, volatile crude oil prices and persistent inflationary risks.
He observed that policy predictability is more important than short-term rate movements for real estate-focused investment funds, as it supports disciplined capital allocation, investor confidence and project execution.
He said India’s real estate sector remains well positioned to attract long-term domestic and global investments due to strong structural demand, urbanisation and growing institutional participation.
Lalit Parihar, Managing Director of Aaiji Group, said escalating geopolitical conflicts have heightened the risk of imported inflation through higher crude oil and commodity prices, making it imperative for the RBI to remain focused on anchoring inflation expectations.
While lower borrowing costs would benefit the real estate sector, preserving macroeconomic stability should remain the central bank’s priority, he said.
He added that the housing sector, supported by strong end-user demand and improved affordability, is resilient enough to withstand a temporary pause in monetary easing.
The RBI’s Monetary Policy Committee is widely expected to announce its policy decision later this week, with market participants closely tracking the central bank’s outlook on inflation, liquidity and growth.
TNT KS
