RBI Monetary Policy Announcement: Expert Insight

RBI Cuts Repo Rate to 5.25%

The Reserve Bank of India, in a bid to support the economy, has cut the repo rate by 25 basis points to 5.25 per cent. This move is expected to make borrowing slightly cheaper for banks and consumers.

The RBI has maintained a neutral stance and announced liquidity measures, including buying government securities worth ₹1,00,000 crore and a 3-year USD/INR Buy Sell swap of USD 5 billion this month to inject durable liquidity into the system. Together, these steps are aimed at ensuring smooth money flow and sustaining economic activity.

Industry experts, including those from the real estate sector, believe the RBI’s latest move will offer timely relief to the economy. The rate cut is expected to ease borrowing costs and improve fund flow across banks and businesses.

Real estate players feel it could nudge homebuyers, especially in the affordable and mid-income segments, and support steady housing demand. Overall, experts see the policy as a positive step that boosts confidence and supports stable economic activity.

Mr. Jash Panchamia, Executive Director, Jaypee Infratech Limited, said, “The RBI’s decision to cut the repo rate by 25 basis points comes at an opportune moment, with inflation under control and the economy on a stable footing.

This move is expected to stimulate consumption across sectors, reinforcing overall economic growth. The housing sector, particularly affordable and mid-segment housing, stands to benefit as lower home loan rates are likely to encourage cautious buyers to make their purchase decisions.”

Mr. Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd., said, “We welcome the RBI’s decision to cut the repo rate by 25 bps to 5.25 per cent amid easing inflation. The move would definitely support the ongoing momentum of overall economic growth, further strengthening demand and investment activity.”

“This latest rate cut is expected to further strengthen market sentiment, enhance purchasing power, and support continued growth in housing demand across key segments,” he added.

Mr. Vikas Bhasin, Managing Director, Saya Group, said, “The RBI’s 25 bps rate cut is a timely boost for the economy and a clear signal of easing financial conditions. For borrowers, this translates into lower EMIs and improved liquidity, while for homebuyers it significantly enhances affordability and purchasing power.

With borrowing costs easing, we expect renewed momentum in housing demand, particularly in the mid-income and first-time buyer segments.”

Mr. Ashok Kapur, Chairman, Krishna Group and Krisumi Corporation, said, “The 25-bps repo rate reduction is well aligned with the current low-inflation environment and India’s steady growth outlook.

The luxury housing segment has seen decisive momentum from end-users over recent quarters, driven by rising incomes and a shift towards lifestyle-led living.

Softer lending rates will further enhance affordability for discerning buyers looking to upgrade and invest in high-quality homes that offer better design standards and long-term asset value.”

Mr. Sumit Agarwal, Director, Ashtech Group, said, “The 25 bps rate cut is a welcome boost for borrowers as it directly reduces EMI pressure and improves overall loan affordability.

Home loan rates, which had climbed above 9% early last year, are now already below 7.5%. With this cut, we expect rates to move closer to the 7%–7.25% range—an attractive window for homebuyers.”

Mr. Sukhraj Nahar , President, CREDAI-MCHI – “The Reserve Bank of India’s decision to cut the repo rate by 25 basis points to 5.25% signals a welcome shift toward supporting growth and improving liquidity at a crucial juncture for the housing sector.

This fourth rate cut since February reinforces the RBI’s commitment to stimulating the broader economy, and we expect banks to gradually pass on the benefit by trimming lending rates.

For homebuyers in the Mumbai Metropolitan Region, especially those in the affordable and mid-income segments, a softening interest rate environment will enhance loan eligibility and improve overall affordability—an essential catalyst in a high-cost market like ours.

While deposit rates may moderate, the positive impact on credit flow, construction finance, and buyer sentiment is far more consequential for sustained housing demand.

The reduction in policy rates, combined with ongoing infrastructure expansion across MMR—from metro networks to new road corridors—creates a conducive environment for developers and homebuyers alike.

As the sector gears up for year-end demand, CREDAI-MCHI believes this policy direction can meaningfully accelerate homeownership, support ongoing projects, and strengthen Mumbai’s journey toward more inclusive and future-ready urban growth.”

Mr. Rohan Khatau, Director, CCI Projects pvt. ltd: “The steady increase in demand for luxury homes indicates clearly the buyer’s preference for the premium category, as a sizeable portion of sales is concentrated in the ₹1 crore-and-above price category.

The 25 bps cut in the repo rate by the MPC to 5.25% comes at a very opportune time and will add to buyer confidence-especially for the luxury and upper-mid categories. This sentiment  is also reinforced by India’s robust economic growth, which reached a six-quarter high of 8.2% in Q2.

Integrated townships are attracting greater interest as homebuyers look increasingly toward self-sufficient, amenity forward communities assuring convenience, lifestyle upgradations, and long-term value.

In Mumbai, this trend is growing exponentially, and with easier lending norms, this momentum in the premium and township-led housing market of the city is sure to gain further steam.”

Mr. Ritu Kant Ojha, Dubai-based real estate strategist advising HNIs invest in the region: “With today’s 25 bps cut following June’s reduction, the RBI has confirmed a sustained low-interest regime.

A cumulative 75 bps easing in six months acts as a massive tailwind for domestic real estate volume. However, the data presents a paradox for the investor: while liquidity is easing, the Rupee breaching 90.43 signals that the ‘silent tax’ of currency depreciation is active.

This divergence between local asset prices and global purchasing power demands a shift in strategy. It is no longer about choosing one market over another.

The sophisticated play is now ‘Geographic Arbitrage’: utilize cheaper domestic borrowing for capital appreciation in India, while anchoring liquid capital in Dollar-pegged markets like Dubai.

In this macroeconomic climate, a balanced portfolio borrows where the rates are falling and generates yield where the currency is hard.”

Mr. Vikas Bhasin, Managing Director, Saya Group: The RBI’s 25 bps rate cut is a timely boost for the economy and a clear signal of easing financial conditions.

For borrowers, this translates into lower EMIs and improved liquidity, while for homebuyers it significantly enhances affordability and purchasing power. With borrowing costs easing, we expect renewed momentum in housing demand, particularly in the mid-income and first-time buyer segments.

Mr. Sumit Agarwal, Director, Ashtech Group: The 25 bps rate cut is a welcome boost for borrowers as it directly reduces EMI pressure and improves overall loan affordability. Home loan rates, which had climbed above 9% early last year, are now already below 7.5%.

With this cut, we expect rates to move closer to the 7%–7.25% range—an attractive window for homebuyers. Lower interest outflow can often be the deciding factor between planning a purchase and finally making one.

This decisive move by the RBI will uplift consumer confidence and stimulate demand across major housing markets.

Get Business News and other news on Finance, Investment, Saving scheme and much more on SugerMint. Follow us on Twitter, Instagram, Facebook, LinkedIn