Reaction on The RBI`s Monetary Policy Announcement by Mr Vimal Nadar, National Director and Head of Research, Colliers India
Below the Reaction on The RBI`s Monetary Policy Announcement by Mr Vimal Nadar, National Director and Head of Research, Colliers India
After consecutive repo rate reduction to the tune of 100 basis points so far in 2025, RBI has decided to keep the repo rate steady at 5.5%. Alongside this, the Central Bank continued to maintain a ‘neutral’ stance, signaling a cautious approach amidst external volatilities and mounting global trade friction. Going ahead, inflation levels are likely to remain low, keeping the GDP growth rate projection for FY 2025-26 intact at 6.5%.
Stability in monetary policy augurs well for homebuyers and real estate developers, particularly in the affordable and mid-income segments. The lowering of interest rates in the recent past is expected to be fully passed on to the end users in upcoming quarters, who are likely to benefit from reduced financing costs. With the festive season approaching, developers can further capitalize on this momentum with timely project completions, new launches and festive offers & discounts. Overall, the cautious yet growth-supportive monetary policy is likely to strengthen demand across real estate segments in the second half of 2025.”
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