RBI likely to slash repo rate again in June
Real Estate

RBI likely to slash repo rate again in June

Amid easing inflation and a stable economic outlook, expectations are rising that the Reserve Bank of India (RBI) will announce another repo rate cut at its upcoming Monetary Policy Committee (MPC) meeting in the first week of June.

The Monetary Policy Committee (MPC), consisting of six members—three from the RBI and three appointed by the central government—meets every two months to set key interest rates aimed at keeping inflation within the government’s target.

Following two earlier rate cuts that eased borrowing costs, industry leaders expect the upcoming reduction to further boost consumer confidence, especially among homebuyers, and support broader economic growth.

Pradeep Aggarwal, Founder & Chairman, Signature Global (India), says, "The Reserve Bank of India is once again expected to offer major relief to homebuyers in its upcoming MPC meeting by reducing the repo rate by 25 basis points, driven by easing inflation and a stable economic outlook. If the rate cut materializes, it would mark the third consecutive reduction and provide a significant boost to the overall economy, particularly the housing sector.

Given that several scheduled commercial banks have been reducing their lending rates following the previous two RBI MPC outcomes, another rate cut at this juncture would act as a catalyst for increased housing demand across segments. As a result, both first-time homebuyers and investors are likely to be encouraged to enter the real estate market, further strengthening demand across the sector."

Ashok Kapur, Chairman, Krishna Group and Krisumi Corporation, says, "The RBI had adopted an accommodative stance in its previous policy review meeting, and it is expected that we will again see a cut in the repo rate by 25 bps in the upcoming policy review cycle, giving further relief to the various sectors of the economy. The real estate sector in particular stands to benefit from a reduction in policy rates, as it makes home loans affordable for buyers, pushing housing demand upwards.

A boost to real estate demand will also have a multiplier effect on allied sectors like cement, steel, and construction equipment, further driving economic momentum. Moving forward, the year looks promising for overall housing demand, and it will present an opportunity for all stakeholders to collaborate and innovate to meet the rising demand efficiently."

Raoul Kapoor, Co-CEO, Andromeda Sales and Distribution, says "There are strong indications and widespread expectations that the Reserve Bank of India (RBI) will implement a third round of rate cuts during the upcoming Monetary Policy Committee (MPC) meeting in the first week of June.

In the previous MPC meeting, the Governor made it clear that the RBI will maintain an accommodative stance, suggesting that policy rates are not likely to increase and may continue to decrease soon. With inflation remaining under control and various other economic factors aligning favorably, we anticipate that the RBI will announce a policy rate cut of 25 basis points. Should this occur, it would bring the cumulative rate cuts in the calendar year 2025 to a notable 75 basis points.

A total reduction of 75 basis points is substantial and would yield significant savings for borrowers. This is particularly beneficial for large borrowers, such as those taking out home loans, who stand to gain both from lower interest payments and increased eligibility for loans. The easing of rates not only provides immediate financial relief but also stimulates consumer spending and investment, potentially bolstering overall economic growth. As a result, both existing and potential borrowers can look forward to a more favourable borrowing landscape in the coming months."

Amid easing inflation and a stable economic outlook, expectations are rising that the Reserve Bank of India (RBI) will announce another repo rate cut at its upcoming Monetary Policy Committee (MPC) meeting in the first week of June.The Monetary Policy Committee (MPC), consisting of six members—three from the RBI and three appointed by the central government—meets every two months to set key interest rates aimed at keeping inflation within the government’s target.Following two earlier rate cuts that eased borrowing costs, industry leaders expect the upcoming reduction to further boost consumer confidence, especially among homebuyers, and support broader economic growth.Pradeep Aggarwal, Founder & Chairman, Signature Global (India), says, The Reserve Bank of India is once again expected to offer major relief to homebuyers in its upcoming MPC meeting by reducing the repo rate by 25 basis points, driven by easing inflation and a stable economic outlook. If the rate cut materializes, it would mark the third consecutive reduction and provide a significant boost to the overall economy, particularly the housing sector.Given that several scheduled commercial banks have been reducing their lending rates following the previous two RBI MPC outcomes, another rate cut at this juncture would act as a catalyst for increased housing demand across segments. As a result, both first-time homebuyers and investors are likely to be encouraged to enter the real estate market, further strengthening demand across the sector.Ashok Kapur, Chairman, Krishna Group and Krisumi Corporation, says, The RBI had adopted an accommodative stance in its previous policy review meeting, and it is expected that we will again see a cut in the repo rate by 25 bps in the upcoming policy review cycle, giving further relief to the various sectors of the economy. The real estate sector in particular stands to benefit from a reduction in policy rates, as it makes home loans affordable for buyers, pushing housing demand upwards.A boost to real estate demand will also have a multiplier effect on allied sectors like cement, steel, and construction equipment, further driving economic momentum. Moving forward, the year looks promising for overall housing demand, and it will present an opportunity for all stakeholders to collaborate and innovate to meet the rising demand efficiently.Raoul Kapoor, Co-CEO, Andromeda Sales and Distribution, says There are strong indications and widespread expectations that the Reserve Bank of India (RBI) will implement a third round of rate cuts during the upcoming Monetary Policy Committee (MPC) meeting in the first week of June.In the previous MPC meeting, the Governor made it clear that the RBI will maintain an accommodative stance, suggesting that policy rates are not likely to increase and may continue to decrease soon. With inflation remaining under control and various other economic factors aligning favorably, we anticipate that the RBI will announce a policy rate cut of 25 basis points. Should this occur, it would bring the cumulative rate cuts in the calendar year 2025 to a notable 75 basis points.A total reduction of 75 basis points is substantial and would yield significant savings for borrowers. This is particularly beneficial for large borrowers, such as those taking out home loans, who stand to gain both from lower interest payments and increased eligibility for loans. The easing of rates not only provides immediate financial relief but also stimulates consumer spending and investment, potentially bolstering overall economic growth. As a result, both existing and potential borrowers can look forward to a more favourable borrowing landscape in the coming months.

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