Views on RBI Monetary Policy by Mr Vimal Nadar, National Director & Head, Research at Colliers India
Below the Views on RBI Monetary Policy by Mr Vimal Nadar, National Director & Head, Research at Colliers India
After a brief pause, RBI has reduced the repo rate further by 25 basis points to 5.25%, the lowest in over three years. This reduction in benchmark lending rates, coupled with the continuation of neutral stance, reflects the confidence in India’s economic resilience despite global uncertainties and a depreciating Rupee. GDP growth rate projection for FY 2025-26 has been revised upwards from 6.8% to 7.3%, supported by robust domestic demand & private consumption. Meanwhile consumer inflation is expected to remain benign at 2% during the ongoing fiscal year.
For the real estate sector, especially the residential segment, this rate cut builds on the momentum created during the recent festive season and GST rationalization of key construction materials. Lower borrowing costs will further improve affordability and buyer sentiment, particularly in affordable & mid-income housing segments. Additionally, steady growth in average income levels can potentially drive property enquiries and boost housing sales in the next few quarters.
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