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"The RBI’s decision to hold the repo rate at 5.25% reflects strategic restraint in an increasingly volatile and globally interconnected environment. While the temporary two-week truce in the Iran–US–Gulf region has brought some short-term relief to markets, the underlying uncertainty remains intact. Continued volatility in oil, metals and the VIX indicates that risk sentiment is still elevated, and any optimism is likely to remain cautious in the near term. In this context, the RBI’s approach signals a clear intent to preserve flexibility rather than commit prematurely to a directional shift.

For real estate, this environment presents both caution and opportunity. Input costs may remain sensitive to global commodity movements, but at the same time, volatility in financial markets tends to redirect capital towards more stable, asset-backed investments. My view is that the RBI will continue in a calibrated wait-and-watch mode, relying more on liquidity and currency management tools while closely monitoring global developments. The current stance is not passive, it is deliberate, ensuring that policy remains responsive as clarity emerges over the coming weeks."