RBI holds repo rate at 5.25%, lifting auto and realty stocks
The RBI kept policy rates unchanged, raised its FY27 growth forecast to 6.7% and lowered its inflation outlook to 5%. Nifty Auto rose 1.5% to a record high while Nifty Realty gained 2.6%, signalling support for vehicle and housing demand financed through credit.
RBI held the repo rate at 5.25%, raised FY27 growth expectations and cut its inflation forecast. The decision lifted Indian auto and realty shares, supporting consumer demand confidence and financing stability for vehicle and housing purchases.
Why this matters
The decision extends the RBI's recent pattern of improving its FY27 outlook: it separately cut the inflation forecast to 5% and lifted growth to 6.7%, while now signalling continued support for credit-financed vehicle and housing demand.
Retail-company signals are accelerating, up 207386% QoQ.