Views on RBI MPC by Rishi Anand, MD & CEO, Aadhar Housing Finance Ltd
Below the Views on RBI MPC by Rishi Anand, MD & CEO, Aadhar Housing Finance Ltd
The RBI’s decision to reduce the repo rate by 50 basis points bringing it down to 5.5% after two earlier cuts of 25 bps each this year goes beyond industry expectations. A cumulative 100 bps reduction through three consecutive MPC meetings in 2025 is a strong signal to support economic recovery amid ongoing global trade pressures. This move eases liquidity and enables lenders to offer more affordable credit. For the affordable housing sector, it’s a timely boost as lower EMIs will improve home loan accessibility, especially for EWS and LIG customers. Even a 1% drop-in interest rates can reduce financial burden meaningfully for families at the bottom of the pyramid. Importantly, this low-interest environment works in synergy with government schemes like PMAY, SWAMIH Fund 2.0, and tax benefits for first-time buyers, amplifying their impact. Together, these steps will help more people move closer to fulfilling their aspiration of owning a home.
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