Views on the RBI Policy 25 bps Rate Cut Impact on Housing Loans & Macros by Kanika Singh Chief Risk Officer– IMGC (India Mortgage Guarantee Corporations)
Below the Views on the RBI Policy 25 bps Rate Cut Impact on Housing Loans & Macros by Kanika Singh Chief Risk Officer– IMGC (India Mortgage Guarantee Corporations)
“The RBI’s decision to cut the repo rate by 25 bps to 5.25% while maintaining a neutral stance reflects its confidence in the current inflation trajectory, which remains well within the comfort zone. The rate cut will provide relief to borrowers, as lending rates and EMIs are likely to ease further, supporting household cash flows and consumption. Although real GDP growth in Q2FY26 surprised on the upside—supported by strong private consumption and industrial momentum—nominal GDP continues to lag, justifying a supportive monetary stance. With the repo rate reduction, Home Loan borrowers are definitely expected to benefit. We have already seen some return on investment (ROI) benefits from the previous two rate cuts being passed on to borrowers. With a 25 bps rate cut, the home loan EMIs will come down substantially, provided the transmission occurs in real-time and not with a lag.The inflation outlook is also positive, supported by low core inflation
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