IGI Logo

Below the Reaction on the RBI`s 50 bps cut in the repo rate by Piyush Bothra, Co-Founder and CFO, Square Yards 

“The 50-basis point rate cut, though bold but expected, reflects the central bank’s acknowledgement of a shifting macroeconomic landscape.  With the full-year FY25 GDP growth projected at only 6.5% — slowest since the pandemic, there is clear evidence of softening momentum. With inflation at a manageable 3%, the RBI had enough headroom to ease policy without triggering price instability. For the real estate sector, which has already been witnessing mellowed growth — this move is the right dosage which was required to unleash the animal spirits. A 50-bps reduction will translate into meaningful EMI savings, improving affordability for homebuyers. It will also give developers greater confidence to move ahead with new launches, especially in the low-to-mid segments.”

Above views are of the author and not of the website kindly read disclaimer