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The RBI's decision to maintain the repo rate at 5.5% while projecting a stable GDP growth of 6.5% for FY26 signals a balanced and supportive macroeconomic environment. With headline inflation easing to a 77-month low of 2.1% and core inflation steady around 4.4%, consumer sentiment and purchasing power are poised to strengthen. These factors directly benefit the real estate sector by improving home affordability and enabling long-term investment confidence. At Great Value Realty, we are optimistic that this economic stability will accelerate housing demand across both residential and commercial segments in the coming quarters.
The RBI's decision to implement a third consecutive rate cut and revise its stance to 'neutral' reflects a proactive approach to support economic momentum amidst global uncertainties. A 50 bps reduction in the repo rate will help in bringing down home loan interest rates further, which is a welcome move for homebuyers and the real estate industry. Lower inflation expectations and a stable GDP outlook will give confidence to developers and investors alike. We believe this move will play a crucial role in reviving housing demand and sustaining growth in the sector.
We are pleased with the RBI’s decision to cut the repo rate by 50 basis points, marking a hat-trick of rate reductions in 2025. This move is both timely and well-calibrated, especially in light of ongoing global economic headwinds. Lower interest rates, along with the revised inflation outlook, offer significant support to real estate buyers — particularly in metropolitan cities like Mumbai, where financial accessibility greatly influences decision-making. The RBI’s continued 'neutral' stance signals its commitment to maintaining flexibility in supporting macroeconomic stability, which is a reassuring indicator for long-term investors.
The RBI’s bold move to cut the repo rate by 50 bps while shifting the policy stance to ‘neutral’ comes as a booster shot for sectors like real estate that are sensitive to interest rate movements. This will significantly improve consumer sentiment and reduce the cost of borrowing, thereby accelerating housing demand, especially in mid-income and affordable segments. We appreciate the RBI’s continued efforts to balance inflation control with the need to maintain economic momentum amidst global uncertainties.
The RBI’s third straight rate cut, along with a shift to a ‘neutral’ stance, reflects its agility in navigating the evolving global and domestic macroeconomic landscape. With the repo rate now at 5.50%, we foresee an uptick in home buying activity driven by improved affordability. The revision in inflation projections to 3.7% is also encouraging and gives confidence in the RBI’s forward-looking policy framework. Such measures are crucial in reinforcing consumer trust and sustaining growth in India’s housing market, particularly in cities like Mumbai.
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The RBI’s decision to cut the policy repo rate by 50 basis points (bps) to 5.50% is driven by easing inflation and a gradual recovery in economic activity. This marks the third consecutive repo rate cut since February 2025, with the rate falling by a total of 100 bps in the first half of the year. With GDP growth for the financial year 2026 projected at 6.5% and inflation expected to remain around 4%, the move reflects cautious optimism amid global uncertainties. On the external front, robust services exports and strong remittance inflows have helped offset the merchandise trade deficit, keeping the current account deficit sustainable. This proactive step aims to enhance liquidity, support investments, and make borrowing, especially for homebuyers, more affordable, though the benefit depends on timely transmission by banks.
The RBI’s 50 bps repo rate cut from 6.0 to 5.5 per cent, which effectively translates into potentially home loan rates reducing, adds to the positive of Thane’s vibrant real estate market. For Thane homebuyers, it is a continuation of previous reductions in home loan interest rates which results in making home ownership more affordable and accessible.
The Reserve Bank of India’s decision to cut the repo rate by 50 basis points, along with a 100 basis points reduction in the Cash Reserve Ratio (CRR) to 3 percent, is a strong and timely measure to support the real estate sector and other industries. With today's policy changes, interest rates have now fallen by 100 basis points from last year's level. We welcome this decision with open arms, as a reduced repo rate translates to lower borrowing costs, while the CRR cut will enhance liquidity in the banking system.
The RBI’s decision to cut the repo rate by 50 basis points—the third cut this calendar year, following two earlier cuts of 25 basis points each—reflects a clear push towards supporting credit growth and economic activity. For both existing and new borrowers, this cumulative 100 basis point reduction will provide significant relief in terms of reduced interest burden. Additionally, the move is expected to inject more liquidity into the system, further stimulating economic momentum.
There was strong anticipation in the market that the RBI would opt for a 50 basis point rate cut in this policy review—and the central bank delivered exactly that. With this move, the total repo rate reduction for the calendar year now stands at 100 basis points, which is quite significant in the current economic context. This cumulative easing is expected to bring considerable relief to retail loan borrowers, particularly those with large-ticket loans such as home loans, where even small reductions in interest rates can translate into meaningful savings over time.
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