Dec 5: 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.”