Expert Comment on Post-Monetary Policy Committee by Kunal Shah, Co-founder, SURE (India`s First Liability Management Platform)
Below the Expert Comment on Post-Monetary Policy Committee by Kunal Shah, Co-founder, SURE (India’s First Liability Management Platform)
“As expected, RBI MPC has delivered a dovish cut in interest rates, acknowledging that the inflation trend is much lower, if we take out the impact of gold prices, realised inflation this year is only 1.5-2.0%. Leaving the rooms for one more cut in future if growth slows down.
The cut is timely and will bring relief for homebuyers, lowering EMIs and reducing total interest outflow. For a home loan of Rs 50 lakhs, borrowers could now save around *Rs 1.80 lakh over the 20y tenure, further improving affordability and boosting housing demand.
For banks, the rate cut may compress lending margins in the short term, but it is also expected to stimulate higher credit demand, particularly in home loans, supporting overall portfolio growth. With rates continuing to soften, 2026 is shaping up to be more favourable for both borrowers and lenders.”
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